Investment firms TD Cowen and Benchmark have reaffirmed their “buy” recommendation for Strategy’s shares and endorsed the company’s decision to hold more dollars in reserves. This was reported by The Block.
Experts described the dollar cushion as essential for future Bitcoin purchases, rather than a departure from the previous strategy. During a recent investor call following the second quarter results, Strategy’s Executive Chairman Michael Saylor stated that the firm’s reserves would no longer be composed entirely of cryptocurrency.
Despite a unified recommendation, analysts’ price targets varied:
- Benchmark lowered its target from $570 to $435, assuming a Bitcoin price of $100,000 by the end of 2026 instead of the previous $125,000;
- TD Cowen projected $260 per share;
- Mizuho noted that the firm “weathered the storm” during a digital gold price drop.
Main Priority
During the call, Strategy’s management highlighted that the primary goal is to return STRC preferred shares to the $99-100 range. Saylor explained that demand for these “short-term low-volatility debt instruments” is 50-100 times greater than for any other company asset. Therefore, the company will focus on this product rather than developing new ones.
From March to July, institutional investments in STRC rose from $1.1 billion to $3.1 billion. Their share increased from 22% to 29%, and the average position doubled to $3.5 million.
The rise in STRC’s price is necessary for these shares to once again become the main tool for raising funds to purchase Bitcoin, the firm noted. Currently, the discount between nominal and market value is about $1.2 billion. Following the latest trading session, Strategy’s stock price fell by more than 4% to $93.28, and has dropped 38.6% since the beginning of the year.
Earlier, on July 30, Strategy released its financial report for the second quarter, revealing a net loss exceeding $8 billion for April-June. The firm’s CEO, Phong Le, stated that the company will continue to sell the leading cryptocurrency as commercially viable.
