MicroStrategy Shares Drop 10% After Bitcoin Strategy Reset and Target Cut
MSTR•MicroStrategy announced a capital-structure reset granting flexibility to sell BTC, bolster liquidity and repurchase shares, and approved $1 billion in buybacks. Shares plunged 10% while TD Cowen cut its target to $260 from $400, citing Bitcoin forecasts of $100K for 2026 and $135K for 2027.
1. Capital-Structure Reset Unveiled
MicroStrategy introduced a broader financing framework that allows the sale of Bitcoin holdings, the use of proceeds for liquidity management, and share repurchases. The company also authorized up to $1 billion in common-stock buybacks to support its balance sheet during market volatility.
2. Shares and Bitcoin Prices React
Following the announcement, MicroStrategy’s stock fell nearly 10%, while the price of Bitcoin dipped more than 3% toward $58,000. Investors expressed concern that the firm may shift away from its previous strategy of relentless BTC accumulation.
3. TD Cowen Lowers Price Target
TD Cowen slashed its MicroStrategy target from $400 to $260, maintaining a Buy rating but revising its Bitcoin forecast down to $100K by end-2026 and $135K by 2027. The cut reflects expectations of muted BTC price performance and its impact on the company’s valuation.
