TD Cowen Cuts Strategy Price Target to $260 but Backs New Capital Framework
Strategy, formerly known as MicroStrategy and traded under the ticker MSTR, raises money through stock and bond offerings to buy Bitcoin, leaving its share price closely tied to the cryptocurrency’s price and the company’s financing capacity. On June 29, 2026, the company unveiled a “Digital Credit Capital Framework” intended to make dividend and interest payments more reliable through US dollar reserves, securities repurchases and a mechanism for monetizing Bitcoin.
TD Cowen cut its MSTR price target by 35% to $260 from $400 on June 30, 2026, while maintaining a “Buy” rating. The reduction chiefly reflected a cut in its year-end 2026 Bitcoin forecast to $100,000 from $140,000. The bank remained positive on the new framework: Strategy issued more than 12 million shares without adding to its Bitcoin holdings and rebuilt its US dollar reserve to $2.55 billion, enough to cover about 17.4 months of dividend and interest payments.
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The history behind this eventTD Cowen Raises Strategy Price Target to $400 on Accelerated Bitcoin Accumulation
Strategy, formerly known as MicroStrategy and traded under the ticker MSTR, has long used debt and equity issuance to accumulate Bitcoin. Its holdings now represent about 4% of the cryptocurrency's global supply, making the stock a key vehicle for gaining indirect Bitcoin exposure through capital markets. The efficiency of its accumulation and its financing costs therefore have a direct bearing on the company's valuation.
On May 19, 2026, TD Cowen maintained its “Buy” rating and raised its MSTR price target to $400 from $395. Strategy also repurchased about $1.5 billion of out-of-the-money convertible bonds at a roughly 8% discount to face value. As of May 17, every 1,000 fully diluted shares corresponded to 2.21 Bitcoin, up from 1.95 at the end of 2025.
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