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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a move reflecting tightening valuation for crypto-exposed equities, TD Cowen slashed its price target for Strategy (MSTR) to $260 from $400. The cut coincided with the brokerage reducing its year-end 2026 Bitcoin forecast to $100,000, according to a report by Benzinga. The new target represents a roughly 35% reduction from the prior target, signaling a more cautious view on the value of the company's Bitcoin holdings.
The downgrade comes amid a broad risk-off shift in digital assets, with Bitcoin falling sharply from its highs. Strategy is among the largest institutional holders of Bitcoin, making its stock highly sensitive to the cryptocurrency's moves. The shares have experienced sharp volatility this year, driven by changing expectations for U.S. interest rates and regulatory developments.
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Sign InAt the June 29 close, MSTR traded at $92.68, well below the new $260 target, suggesting either excessive pessimism or expectations of further downside. The stock's daily range was $82.72–$94.37. Looking ahead, upcoming U.S. inflation data and bank stress test results could influence sentiment toward risk assets.
In a related development, fresh technical analysis suggests Bitcoin may see a bounce in July 2026 followed by a sharp decline in August, with a final low near $39,000 expected by October, according to specialized reports. This more bearish outlook adds further pressure on MSTR, which remains highly correlated with the cryptocurrency's moves.