TLDR
- TD Cowen slashed Strategy (MSTR) stock price target from $400 to $260 while maintaining its Buy rating.
- The downward revision stems from a bearish Bitcoin price outlook rather than Strategy’s newly announced financial framework.
- Despite the cut, TD Cowen projects approximately 200% upside potential for MSTR shares.
- MSTR stock rallied more than 12% Monday following Strategy’s Digital Credit Capital Framework announcement.
- Strategy halted Bitcoin acquisitions and offloaded $1.15 billion in MSTR shares, sparking backlash from crypto community leaders like Ripple CEO Brad Garlinghouse.
TD Cowen has significantly lowered its price objective for Strategy (MSTR) stock, dropping the target to $260 from a previous $400. However, the investment firm maintained its Buy recommendation despite the substantial reduction.
This adjustment arrives one day after MSTR shares jumped over 12%. The explosive rally came in response to Strategy’s disclosure of a revamped approach to managing its Bitcoin treasury.
According to TD Cowen, the revised price target isn’t driven by Strategy’s new initiative. Rather, the firm cited a more conservative projection for Bitcoin’s future valuation.
The TD Cowen analyst characterized Strategy’s newly introduced framework as beneficial for “credit visibility and capital flexibility.” This represents a notably optimistic assessment considering the accompanying price target reduction.
Strategy announces a Digital Credit Capital Framework designed to strengthen Digital Credit, enhance liquidity, preserve long-term Bitcoin exposure, and support long-term value creation. $MSTR $STRC https://t.co/AUoUCtem53
— Michael Saylor (@saylor) June 29, 2026
Despite lowering the target, TD Cowen continues to forecast roughly 200% appreciation potential from MSTR’s current trading levels. This substantial gap between market price and target reflects significant expected growth.
Breaking Down Strategy’s Digital Credit Capital Framework
On June 29, Strategy submitted documentation for its Digital Credit Capital Framework to regulatory authorities. The blueprint grants the company authorization to liquidate up to $1.25 billion worth of its Bitcoin holdings.
The proceeds from these potential sales would serve multiple purposes. Management plans to allocate funds toward preferred dividend distributions, servicing interest payments, strengthening cash reserves, and financing potential share repurchase programs.
Strategy additionally greenlit a repurchase initiative worth up to $1 billion targeting its Digital Credit Securities. This program could encompass STRC, STRF, STRD, and STRK, with management determining which securities would optimize balance sheet strength.
Importantly, the company has temporarily suspended its Bitcoin accumulation strategy. Simultaneously, Strategy divested approximately $1.15 billion in MSTR stock as part of this comprehensive plan.
Cryptocurrency Community Pushback
The Bitcoin sale component has generated considerable controversy within the crypto ecosystem. Detractors contend that Strategy selling Bitcoin could undermine confidence throughout the broader digital asset marketplace.
Brad Garlinghouse, CEO of Ripple, has emerged as a prominent critic. He’s openly condemned Michael Saylor’s firm for its contribution to the recent cryptocurrency market decline.
Meanwhile, Saylor continues advocating strongly against selling Bitcoin. This position has intensified the ongoing discourse across social media platforms.
However, not all market observers view the selloff negatively. A Grayscale executive recently argued that a potential $3 billion Bitcoin liquidation by Strategy might paradoxically strengthen investor confidence in both MSTR equity and STRC securities.
This divergence of perspectives reveals a fundamental divide. Some interpret Strategy’s moves as prudent diversification; others perceive it as a Bitcoin advocate retreating from its foundational thesis.
Currently, the company has suspended Bitcoin accumulation activities while implementing this new capital allocation strategy. TD Cowen’s updated $260 price target represents the most recent Wall Street perspective on MSTR’s trajectory.
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