According to ChainCatcher, citing The Block, investment bank TD Cowen has lowered its 12-month price target for Strategy (formerly MicroStrategy), a Bitcoin reserve company, from $500 to $440, citing a decline in Bitcoin returns due to ongoing equity and preferred stock issuances. Analysts expect Strategy to acquire approximately 155,000 Bitcoin by fiscal year 2026, a significant increase from the previously anticipated 90,000. However, these acquisitions will primarily be financed through common and preferred stock, diluting Bitcoin returns. Despite the reduced price target, analysts still view Strategy as a valuable tool for Bitcoin investment and predict that Bitcoin's price will reach approximately $177,000 by December 2026 and about $226,000 by December 2027.
TD Cowen Lowers Strategy (Formerly MicroStrategy) 12-Month Target to $440
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Summary
TD Cowen has reduced its 12-month price target for Strategy (formerly MicroStrategy) from $500 to $440, citing declining Bitcoin yields due to ongoing equity and preferred stock issuance. Analysts now anticipate that Strategy will purchase 155,000 Bitcoin by 2026, up from 90,000, although these purchases will be funded through share issuance, which will dilute returns. Despite the lower price target, analysts remain optimistic, projecting that the price of Bitcoin could reach $177,000 by 2026 and $226,000 by 2027. Alternative cryptocurrencies may attract more attention if Bitcoin underperforms.
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