TD Cowen Lowers Strategy Price Target Amid BTC Yield Drop
- TD Cowen reduces Strategy’s price target to $440 due to Bitcoin BTC +0.82% yield trends.
- Despite reduced yield, BTC purchases increase significantly.
- Market sees Strategy stock rise amid BTC price rally.
TD Cowen reduced its 12-month price target for Strategy (MSTR) from $500 to $440 on January 15, 2026, citing equity dilution impacts.
The revision impacts investors, indicating dependency on equity sales for Bitcoin acquisition, with potential stock volatility amid Bitcoin market fluctuations.
TD Cowen adjusted its forecast for Strategy from $500 to $440 citing reduced Bitcoin yield amid significant equity dilution. Despite the decrease, the company plans increased Bitcoin purchases.
Lance Vitanza, lead analyst at TD Cowen, announced the change, retaining a Buy rating for Strategy and predicting an acquisition of 155,000 BTC in 2026. This rise is driven by equity and preferred stock sales.
Immediate impacts on the financial market were observed, with Strategy’s stock increasing by 5.6% following the announcement. This is attributed to a recent rally in Bitcoin prices, currently trading above $95,000.
The financial outlook shifts, although reduced yields are seen. Strategy plans to enhance their holdings by self-financing through stock and preferred share sales, generating $1.25 billion to augment their Bitcoin reserves.
Community and market sentiment remain cautiously optimistic, with stakeholders assessing the potential long-term benefits of increased Bitcoin holdings versus yield impacts. “As the largest corporate holder of Bitcoin, our strategy continues to adapt, reflecting market conditions and funding options,” said Michael Saylor, Executive Chairman, Strategy.
Analysts suggest that while immediate financial pressure exists, Strategy’s significant holdings could provide financial benefits if BTC prices continue to rise, with historical trends showing optimistic forecasts for late 2026 and 2027.
