TD Cowen lowers Strategy target price to $260, but says its new capital framework is' constructive ' BlockBeats News: On June 30th, Wall Street investment bank TD Cowen lowered its Strategy target price from $400 to $260, a decrease of about 35%, but maintained a "buy" rating, and rated the company's "Digital Credit Capital Framework" released on Monday as a "gradual positive" for credit visibility and capital flexibility. Analysts have made it clear that this downward adjustment is mainly due to the adjustment of Bitcoin price expectations, rather than the framework itself: the bank has lowered its Bitcoin price expectation for the end of 2026 from about $140000 to about $100000, and its expectation for the end of 2027 from $190000 to about $135000. The current target price of $260 still implies over 200% upward potential compared to Strategy's closing price of $92.68 on Monday, and analysts acknowledge that this gap may appear unrealistic. In terms of the new framework, Strategy's US dollar reserves have been rebuilt to $2.55 billion, and the company has issued over 12 million common shares in the past week without purchasing any Bitcoin. TD Cowen stated that this move will help restore investors' confidence in the company's ability to withstand long-term downturns in Bitcoin. The current reserve coverage exceeds the 17 month minimum requirement for preferred stock dividends and interest expenses, and if included in the authorized Bitcoin monetization limit, it will reach approximately 26 months. The company has been approved to repurchase up to $1 billion of preferred stock and $1 billion of common stock simultaneously, which TD Cowen said marks the company's shift from one-way stock issuance to active capital structure optimization; The upper limit of the Bitcoin monetization plan is set at $1.25 billion, and the proceeds will be used to replenish the US dollar reserves. In addition, the dividend yield of STRC preferred stock has been raised from 11.5% to 12%, aiming to stabilize its trading price close to its face value of $100- the security has recently been discounted by 26% from face value due to the recent drop in Bitcoin prices. [Original link]