ChainThink report, June 30: TD Cowen downgraded Strategy's price target from $400 to $260 while maintaining its "Buy" rating, stating that the firm's latest capital framework is constructive.

This revision primarily stems from revised downward expectations for Bitcoin prices, rather than a negative assessment of the capital framework itself.

TD Cowen has lowered its Bitcoin price forecast to approximately $100,000 by end-2026 from around $140,000, and to about $135,000 by end-2027 from $190,000.

Based on Strategy’s Monday close of $92.68, the $260 price target still implies over 200% upside potential.

According to reports, Strategy has rebuilt its USD reserves to $2.55 billion, issued over 12 million common shares in the past week, and did not purchase any Bitcoin during this period.

TD Cowen believes this move strengthens market confidence in Strategy’s ability to navigate through a prolonged Bitcoin bear cycle.

In addition, Strategy has received approval for up to $1 billion in preferred share buybacks and $1 billion in common share buybacks, along with a cap of $1.25 billion on Bitcoin monetization, with proceeds intended to replenish USD reserves.

The STRC preferred dividend yield has also been increased from 11.5% to 12%.