TD Cowen slashed its price target for Strategy (MSTR) to $260 from $400, reflecting Bitcoin's ongoing weakness. The analysts now expect Bitcoin to reach $100,000 by year-end, down from $140,000. Bitcoin fell below $60,000, down over 20% in the past month and more than 53% from its all-time high. Strategy's stock dropped 8.6% to $84.75. The firm unveiled a Digital Credit Capital Framework, which analysts view positively for credit visibility and capital flexibility. The framework outlines management of cash reserves, preferred stock, and its 847,363 Bitcoin holdings. Strategy increased its cash reserves to $2.55 billion and raised the dividend rate on its preferred stock STRC to 12%. Analysts believe the tactical moves should restore confidence in the company's ability to weather a Bitcoin downturn.

Key facts

• TD Cowen cut Strategy price target to $260 from $400, citing Bitcoin weakness.
• Bitcoin fell below $60,000, down 20% in a month and 53% from all-time high.
• Strategy unveiled a capital framework and boosted cash reserves to $2.55 billion.
• STRC preferred stock dividend rate hiked to 12%, the eighth increase.
• Analysts see positive outlook on Strategy's capital management flexibility.

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