Strategy Inc Shares Fall 10% on Framework Overhaul and $260 Target
MSTR•Strategy Inc shares plunged almost 10% after unveiling a capital-structure overhaul granting flexibility to sell Bitcoin, bolster liquidity and repurchase shares. TD Cowen cut its target to $260 from $400 after trimming its 2026 Bitcoin forecast to $100,000 and citing Strategy’s $2.55 bn liquidity reserve and 12% dividend.
1. Capital-Structure Overhaul Unveiled
Strategy Inc approved a new capital framework giving management discretion to monetize Bitcoin holdings, maintain a $2.55 bn USD reserve, authorize up to $1 bn in share repurchases and raise its preferred dividend rate to 12%, aiming to strengthen balance-sheet flexibility.
2. Shares Plunge on Bitcoin Decline
Shares of Strategy Inc dropped nearly 10% after Bitcoin slipped below $60,000 and investors grew anxious that the company’s newfound selling flexibility could undermine its historic accumulation strategy.
3. TD Cowen Lowers Price Target
TD Cowen reduced its price target for Strategy Inc to $260 from $400, citing a revised year-end Bitcoin forecast of $100,000 and maintaining a Buy rating with a 3x earnings multiple.
