TD Cowen cuts Strategy target to $260 on Bitcoin outlook

Investment firm TD Cowen significantly lowered its price target for shares of Strategy on Tuesday, citing a more conservative long-term outlook for Bitcoin rather than concerns over the company's newly announced financial framework. The firm cut its target to $260 from $400, a reduction of 35%, while maintaining a buy rating on the stock.

The downward revision came one day after Strategy's stock rallied more than 12% following the company's announcement of a new Digital Credit Capital Framework. Analysts led by Lance Vitanza emphasized that the price target cut was driven solely by a reduced forecast for Bitcoin's price, now expecting it to reach approximately $100,000 by the end of 2026, down from a prior estimate of around $140,000. Bitcoin's price fell below $60,000 on Tuesday, having declined more than 20% over the past month.

TD Cowen described Strategy's new framework as a positive step for the company's credit visibility and capital flexibility. The plan, detailed in a regulatory filing dated June 29, authorizes Strategy to sell up to $1.25 billion worth of Bitcoin to bolster its U.S. dollar reserves, fund dividend payments, service interest obligations, and finance...