STRC•STRC•Strategy shares fell nearly 10% after unveiling a capital overhaul that includes a Bitcoin monetization program, a 12% dividend and $1 billion authorizations for digital credit and stock buybacks. TD Cowen cut its target to $260 from $400, driven by lowered Bitcoin forecasts of $100,000 for 2026 and $135,000 for 2027.
On June 29, Strategy unveiled a broad capital structure overhaul for its Bitcoin strategy, including a board-approved U.S. dollar reserve of $2.55 billion to cover roughly 17.4 months of preferred dividends, a 12% dividend rate on STRC shares and authorizations of up to $1 billion each for digital credit and stock repurchases. The framework establishes a formal Bitcoin monetization program, signaling that future BTC purchases will compete with liquidity preservation and repurchase priorities, which drove shares down nearly 10% on investor selloff concerns.
TD Cowen cut its price target for Strategy to $260 from $400, attributing the reduction to revised Bitcoin end-2026 and 2027 forecasts of $100,000 (down from $140,000) and $135,000 (down from $190,000), respectively. Analysts maintained a Buy rating and a 3x earnings multiple, reflecting confidence in Strategy’s capital management framework despite a weaker crypto price outlook.
Bitcoin has slid below $60,000 and spot Bitcoin funds have seen $5.1 billion of year-to-date outflows, intensifying pressure on Strategy as technical indicators deteriorate. Investors will closely watch whether the new framework can restore confidence in Strategy’s ability to balance Bitcoin accumulation with dividend payouts and buybacks amid ongoing crypto market volatility.
