TD Cowen Cuts Strategy Price Target to $260, Praises New Capital Framework

According to TD Cowen, on June 30, the investment bank cut Strategy's price target from $400 to $260, a 35% reduction, while maintaining a "buy" rating and calling the company's new digital credit capital framework "constructive" for credit visibility and capital flexibility.

The downgrade stems primarily from revised Bitcoin price expectations rather than the framework itself. TD Cowen lowered its 2026 year-end Bitcoin forecast to $100,000 from $140,000 and its 2027 year-end target to $135,000 from $190,000. Strategy rebuilt its dollar reserves to $2.55 billion and issued over 12 million common shares in the past week without purchasing Bitcoin. The company won approval for up to $1 billion in preferred stock repurchases and $1 billion in common stock buybacks, with a $1.25 billion Bitcoin liquidation limit to supplement dollar reserves.