Investment firms TD Cowen and Benchmark have reaffirmed their "buy" recommendation for Strategy's stock, endorsing the company's decision to bolster its cash reserves. This strategic shift is seen as a necessary step for future Bitcoin acquisitions rather than a deviation from its prior approach. During an investor call discussing the second quarter results, Michael Saylor, Strategy's Executive Chairman, announced that the firm would diversify its reserves beyond cryptocurrency.
While both firms support the move, they differ in their price targets:
- Benchmark has lowered its target from $570 to $435, factoring in a Bitcoin price of $100,000 by the end of 2026, down from an earlier estimate of $125,000;
- TD Cowen has set a price target of $260 per share;
- Mizuho commented that the firm is managing through the current market downturn.
Key Priorities
During the call, Strategy's leadership highlighted their goal of raising the price of STRC preferred shares back to the $99-100 range. Saylor noted that demand for these "short-term low-volatility debt instruments" far exceeds interest in other assets, prompting the company to concentrate on this product rather than expanding its offerings.
