TD Cowen has reduced its price target for Strategy to $440, down from $500, citing share dilution and weakened Bitcoin profitability as key factors. The research firm highlights that Strategy's ongoing issuance of common and preferred shares has diluted stock value, impacting potential earnings per share for existing investors. Additionally, fluctuations in Bitcoin's market value and rising operational costs have pressured profitability for companies like Strategy, which are closely tied to Bitcoin's performance. The report underscores the challenges faced by crypto-linked companies in balancing capital management with shareholder value. TD Cowen's downgrade reflects a broader trend of applying traditional financial scrutiny to digital asset businesses, emphasizing the need for robust financial discipline and adaptive business models in the evolving cryptocurrency sector.