TD Cowen Cuts MicroStrategy Price Target 35% on Bitcoin Weakness

TD Cowen trimmed its price target for MicroStrategy (NASDAQ: MSTR) by 35% to $260 from $400, citing Bitcoin's observed ongoing weakness as the sole driver behind the reduction. Analysts led by Lance Vitanza attributed the downgrade directly to the cryptocurrency's recent performance rather than operational issues within Michael Saylor's Bitcoin treasury company. TD Cowen had been one of the most consistently bullish voices on MicroStrategy, previously raising its target to $680 last July when shares traded above $450.

TD Cowen Revises Bitcoin Year-End Forecast to $100,000

TD Cowen now expects Bitcoin to end the year near $100,000, down sharply from its earlier call of $140,000. Bitcoin fell back below $60,000 last week. At press time, it was trading near $60,109, down more than 15% over the past month. It's now off more than 50% from the record above $126,000 it hit last October.

MicroStrategy Stock Declines 34% Over Past Month

MicroStrategy's stock has felt the pressure directly. Over the past month, MSTR stock has seen a decline of more than 34% while its year-to-date (YTD) returns have declined by 37.94%, as per Yahoo Finance. The downgrade lands just as MicroStrategy unveiled a new capital framework meant to steady its finances, though TD Cowen said its updated numbers were formed independently of that announcement.

MicroStrategy Authorizes $1.25 Billion Bitcoin Sales Program

The plan lifted MicroStrategy's cash reserves to $2.55 billion, a figure that has drawn scrutiny as costs tied to its preferred stock, Stretch (NASDAQ: STRC), have climbed. The preferred shares were trading near $88.09 intraday as of press time, still below their $100 par value. MicroStrategy also authorized a program to sell up to $1.25 billion of Bitcoin from its 847,363-coin stockpile to top off reserves if needed.

FAQ

Why did TD Cowen cut MicroStrategy's price target?

TD Cowen reduced MicroStrategy's price target by 35% to $260 from $400 due to Bitcoin's observed ongoing weakness. Analysts led by Lance Vitanza pinned the reduction squarely on the cryptocurrency's recent performance rather than any internal operational issues within MicroStrategy itself.

What is TD Cowen's revised Bitcoin year-end forecast?

TD Cowen now expects Bitcoin to end the year near $100,000, down sharply from its earlier forecast of $140,000. This revision reflects the cryptocurrency's recent decline, with Bitcoin trading near $60,109 at press time, down more than 15% over the past month and off more than 50% from the record above $126,000 it hit last October.