TD Cowen lowered its price target for Strategy to $440, citing pressure on the outlook for Bitcoin yields.

Investment bank TD Cowen lowered its one-year price target for Bitcoin reserve company Strategy (formerly MicroStrategy) from $500 to $440, citing the dilution effect of continued issuance of common and preferred shares, which weakens expected Bitcoin yields. Analysts predict Strategy may add approximately 155,000 Bitcoins in fiscal year 2026, higher than previously forecast, but a higher proportion of equity financing will limit the growth rate of Bitcoin holdings per share. TD Cowen stated that despite short-term yield pressure, relevant indicators are expected to improve in fiscal year 2027 as Bitcoin prices recover. The report also points out that Strategy has increased its purchases recently during Bitcoin price corrections, with most of the financing proceeds used to increase its Bitcoin holdings. Analysts remain relatively positive on its long-term value as a Bitcoin exposure tool and believe that some of its preferred shares have potential for yield and capital appreciation. Furthermore, regarding index inclusion, MSCI has not yet removed Bitcoin reserve companies from its index, which is seen as a short-term positive, but uncertainty remains in the medium to long term. (The Block)