Canaccord Cuts Strategy Price Target as Shares Languish

Strategy shares recently closed at $86.93, hovering just above a 52-week low of $81.81 and down 77% from their value a year ago. Following the announcement of a new Digital Credit Capital Framework, the stock saw an 8.12% rebound to $93.96. Canaccord analysts argued that the decline reflects market sentiment rather than a structural failure, noting that the cryptocurrency continues to benefit from limited supply and broader financial institutionalization. The brokerage suggested that a medium-term recovery is probable, provided Bitcoin achieves moderate annual appreciation.

Other analysts echo this cautious optimism despite adjusting their outlooks. TD Cowen recently lowered its price target from $400 to $260, citing a more conservative long-term forecast for Bitcoin rather than internal business concerns. Meanwhile, Cantor Fitzgerald and Benchmark remain firm on their ratings of $212 and $570 respectively, citing confidence in the company’s liquidity management.

Strategy’s new capital framework, disclosed in a June 29 filing, grants the firm authority to raise $1.25 billion through Bitcoin sales to bolster cash reserves and fund interest obligations. The company has also authorized $1 billion in share buybacks for its Digital Credit Securities. While Strategy has paused new Bitcoin acquisitions, it has sold approximately $1.15 billion in shares to stabilize its capital structure.