TD Cowen cut its price target on Strategy to $260 from $400, a roughly 35% reduction, while maintaining its Buy rating and describing the company's newly unveiled Digital Credit Capital Framework as "incrementally constructive" for credit visibility and capital flexibility.
Analysts led by Lance Vitanza and Jonnathan Navarrete made it clear that the target cut stems from a revised bitcoin (BTC) price forecast rather than Strategy's framework announcement on Monday.
TD Cowen's price target implies more than 200% upside from Strategy's $92.68 closing price on Monday, a gap the analysts acknowledged "may seem out of context" given the size of the required move. TD Cowen also projects bitcoin will reach approximately $100,000 by the end of 2026, down from a prior estimate of roughly $140,000, and around $135,000 by the end of 2027, down from $190,000.
The bank left its projections for the number of bitcoins Strategy will acquire unchanged and kept its earnings multiple steady at 3x.
USD reserve rebuilt to $2.55 billion
