Investment bank TD Cowen lowers Strategy target price to $440

According to The Block, investment bank TD Cowen has lowered the one-year price target for Bitcoin reserve company Strategy (formerly MicroStrategy) from $500 to $440, due to ongoing equity and preferred stock issuances leading to a decline in Bitcoin yields.

Analysts expect Strategy to acquire approximately 155,000 Bitcoins in fiscal year 2026, a significant increase from the previous estimate of 90,000, but these acquisitions will primarily be financed through common and preferred stock, diluting Bitcoin yields.

Despite the lowered price target, analysts remain optimistic about Strategy's value as a Bitcoin investment tool, predicting that the price of Bitcoin will reach approximately $177,000 by December 2026 and about $226,000 by December 2027.