TD Cowen lowers Strategy target price to $500

According to TechFlow, on December 5, Decrypt reported that investment bank TD Cowen on Wednesday lowered the price target for Strategy, the world’s largest Bitcoin holding company, from $535 to $500, citing increased stock price volatility and heightened shareholder dilution effects. Strategy recently announced that it had raised $1.44 billion to build up cash reserves, mainly to pay preferred stock dividends, and stated that it may sell its Bitcoin holdings if necessary.

Strategy has issued $7.7 billion in preferred stock this year, but due to its stock price dropping about 24% over the past month—now hovering near a 13-month low—the dilution effect has exceeded expectations. TD Cowen analysts believe that although building liquidity reserves is a prudent move, the company’s high volatility requires reducing its earnings multiple from 9x to 5x.

Meanwhile, investment bank Benchmark remains optimistic about Strategy, raising its 2026 price target to $705, believing the company’s stock is still “one of the most promising asymmetric investment tools in the global market” due to its unparalleled financing ability and potential gains from rising Bitcoin prices.