Investment bank TD Cowen cut its price target for Strategy, citing weakness in bitcoin. It lowered the target to $260 from $400, a 35 percent cut, and reduced its year-end bitcoin forecast to $100,000 from $140,000. Analysts cited bitcoin’s failure to rebound and said Strategy’s valuation needs a more realistic reassessment. TD Cowen was positive on Strategy’s new capital management framework and higher cash holdings, but noted rising costs from its STRC preferred stock.

Major Wall Street brokerages assessed market concerns about a forced bitcoin sale by Strategy as unlikely. Benchmark and TD Cowen said in reports they see a low chance the company would be compelled to sell bitcoin and maintained their existing buy ratings. Analysts pointed to cash-like assets set aside for preferred dividend payments and the lack of near-term redemption pressure for STRC perpetual preferred shares. TD Cowen also said Strategy’s bitcoin treasury strategy requires at least a mild upward price trend over the long term.