Woofun AI reports that TD Cowen reduced its price target for Strategy from $400 to $260, a 35% decrease, while maintaining a "Buy" rating. The analyst attributed this adjustment primarily to lowered Bitcoin price expectations, cutting the year-end 2026 forecast from $140,000 to $100,000 and the 2027 outlook from $190,000 to $135,000.

TD Cowen described Strategy's "Digital Credit Capital Framework" as a "progressive positive for credit visibility and capital flexibility.' The firm noted that Strategy replenished US dollar reserves to $2.55 billion by issuing over 12 million common shares without purchasing Bitcoin. This move aims to restore investor confidence in withstanding prolonged Bitcoin downturns, with reserve coverage now exceeding dividend and interest requirements by approximately 26 months.

Additionally, the company secured approval for up to $1 billion in preferred stock buybacks and $1 billion in common stock buybacks, marking a shift toward active capital structure optimization. The Bitcoin cash-out ceiling was set at $1.25 billion, with proceeds directed to US dollar reserves.

Furthermore, the STRC preferred stock dividend rate increased from 11.5% to 12% to stabilize trading prices near the $100 face value, addressing recent discounts of up to 26%.