Bernstein analyst Gautam Chhugani trimmed the price target on the Strategy (Nasdaq: MSTR) stock on Aug. 25.
The analyst cut the price target from $450 to $350 while keeping an “Outperform” rating on the shares. He attributed the target cut to his updated Bitcoin cycle outlook and Strategy’s equity dilution.
With 840,447 Bitcoin (BTC) on its balance sheet, Strategy is the world’s largest BTC treasury company.
Bernstein said the company’s robust balance sheet can sustain cash coverage for annual interest and preferred dividend obligations for roughly 3.9 years. But the analyst said that continued BTC strength and a recovery in the STRC preferred stock toward $100 (currently trading at $97.99, up 10% in a month) could see the company “going kinetic again with Bitcoin purchases.”
Related: Analyst reveals timeline for Bitcoin to hit $1 million
New Bitcoin price target
As Chhugani lowered the MSTR price target based on its updated Bitcoin outlook, it’s worth looking at the latter.
He said he expects BTC to reach approximately $125,000 by the end of 2026 under both base and bull cases.
While he expects BTC to hit a new all-time high (ATH) of $150,000 by mid-2027 and around $300,000 in 2029 in a base case, his bull target is $200,000 by mid-2027 and $500,000 in 2029.
Chhugani reiterated the Bitcoin price target of approximately $1 million by 2033.
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Stock target cut of 22% still represents 176% upside
Chhugani has cut the price target on the MSTR stock by 22% to $350, it still represents an upside of 176% from Tuesday’s closing price of $126.83.
The stock was trading at $139.56 at the time of writing, up 13% in a day.
This story was originally published by TheStreet on Aug 27, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.