TD Cowen Raises Strategy Target to $400 on Bitcoin Buying

TD Cowen raised its price target for Strategy to $400 in a research note, citing faster Bitcoin accumulation and accretive deleveraging as the basis for the revision.

The research team wrote that Strategy has increased purchases of Bitcoin while taking steps to lower net leverage. The firm flagged the growing size of the company's Bitcoin holdings and reductions in financial risk as drivers of the higher target.

TD Cowen attributed the change to two factors: an acceleration in the pace at which Strategy is adding Bitcoin to its balance sheet, and deleveraging moves analysts view as accretive to shareholders. Faster accumulation raises the company’s exposure to potential Bitcoin price gains. Lower leverage reduces interest and refinancing pressures that can reduce equity value.

The note said the valuation update reflects how those balance-sheet changes could affect enterprise value and per-share metrics.

Strategy is a publicly traded company that uses its corporate balance sheet to acquire Bitcoin, aligning a portion of its equity value with the cryptocurrency’s price. Market assessments of companies that hold Bitcoin consider the pace of accumulation, custody and governance practices, and how management manages debt relative to crypto holdings.