According to Deep Tide TechFlow, on December 5, investment bank TD Cowen lowered the target price of the stock of Strategy, the world's largest Bitcoin company holder, from $535 to $500 due to increased stock price volatility and intensified shareholder dilution effects. Recently, Strategy raised $1.44 billion to establish cash reserves, mainly to pay preferred stock dividends, and may sell Bitcoin.
This year, Strategy issued $7.7 billion in preferred stock, but the stock price has fallen about 24% in the past month, hovering near a 13-month low, with dilution effects exceeding expectations. TD Cowen analysts believe that the company's high volatility requires reducing the earnings multiple from 9 times to 5 times.
At the same time, investment bank Benchmark has a positive outlook on Strategy, raising its 2026 target price to $705, believing its stock is one of the most promising asymmetric investment tools in the global market due to its financing capabilities and the potential gains from the rise of Bitcoin.
