- TD Cowen cut its price target on Strategy to $440 from $500 while keeping a buy rating.
- Strategy raised about $1.25 billion and used nearly all proceeds to buy roughly 13,600 additional Bitcoin.
- The research note said accelerated Bitcoin purchases and price compression hurt near-term modeling and key metrics.
- “Strategy has not only survived this latest period of price compression; it has leaned into it,” analysts said.
- Experts link the moves to broader shifts in Bitcoin’s institutional market structure and say the ecosystem still needs missing infrastructure pieces; see related analysis.
On Wednesday, TD Cowen lowered its price target for Strategy (Nasdaq: MSTR) to $440 from $500 but kept a buy rating, citing near-term pressure on the company’s key performance metric after an acceleration of Bitcoin purchases. The firm’s research team said the adjustment reflects the short-term impact of the purchases on its internal model. Lance Vitanza and Jonnathan Navarrete authored the note.
The analysts wrote that “Strategy has not only survived this latest period of price compression; it has leaned into it.” They added the company remained appealing for investors seeking Bitcoin exposure even as its premium to net asset value narrowed. The note said Strategy could have slowed treasury buys but instead moved to take advantage of what it saw as a temporary price dip.
During the week ending January 11, Strategy raised about $1.25 billion through a mix of common stock and variable-rate preferred stock called Stretch, and nearly all proceeds funded the purchase of roughly 13,600 more Bitcoin. The research team flagged that the rapid accumulation compressed short-term metrics used in valuation models.
Michael Saylor, the company’s chairman, pushed back on focusing only on NAV multiples in an interview, saying, “No, I think that’s just a myopic narrative,” and adding, “Companies exist to create value.”
Market observers tied Strategy’s actions to changing institutional infrastructure. Vincent Liu of Kronos Research noted deeper regulated venues, ETFs, and derivatives. Ryan Yoon of Tiger Research said more ecosystem pieces must be built for Bitcoin to function reliably as financial infrastructure, pointing to his firm’s earlier analysis.
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