BlockBeats news: On January 15, investment bank TD Cowen lowered its 12-month price target for Bitcoin treasury company Strategy from $500 to $440, citing ongoing Bitcoin yield dilution caused by the company's continued fundraising through common and preferred shares.
TD Cowen analysts expect that MicroStrategy will add approximately 155,000 Bitcoin in the 2026 fiscal year (previously expected to be 90,000). However, the higher Bitcoin purchase pace will mainly rely on equity financing, which will lower the "Bitcoin yield" (i.e., the increase in Bitcoin holdings per share). Analysts have revised their Bitcoin yield forecast for the 2026 fiscal year down to 7.1%, significantly lower than the previous 8.8%, and much lower than the 22.8% in the 2025 fiscal year.
During the recent Bitcoin price pullback, Strategy continued to significantly increase its Bitcoin purchases. In the week ending January 11, the company issued approximately 6.8 million common shares and 1.2 million STRC floating-rate preferred shares, raising about $1.25 billion in total, which was almost entirely used to purchase 13,627 Bitcoin. TD Cowen noted that since the financing price is close to the book value, the Bitcoin yield from this move is limited, and it would only make sense if Bitcoin's price rises significantly.
Looking ahead, TD Cowen expects the Bitcoin yield to rebound to 8.1% in fiscal year 2027 and maintains a long-term optimistic outlook on Bitcoin's price, forecasting it to reach approximately $177,000 by the end of 2026 and around $226,000 by the end of 2027.