TechFlow, Dec 5 — According to Decrypt, investment bank TD Cowen on Wednesday lowered its price target for shares of Strategy, the largest holder of Bitcoin companies, from $535 to $500, citing increased stock volatility and worsening shareholder dilution. Strategy recently announced it had raised $1.44 billion to build a cash reserve primarily for paying preferred stock dividends, and indicated it might sell some of its Bitcoin holdings if necessary.
Strategy has issued $7.7 billion in preferred shares this year, but its stock price has dropped around 24% over the past month, hovering near a 13-month low, leading to greater-than-expected dilution. TD Cowen analysts believe that while building a liquidity reserve is prudent, the company's high volatility warrants reducing its earnings multiple from 9x to 5x.
Meanwhile, investment bank Benchmark remains bullish on Strategy, raising its 2026 price target to $705, calling the company's stock "one of the most promising asymmetric investment instruments in the global market" due to its unparalleled fundraising capacity and potential upside from rising Bitcoin prices.
