TD Cowen Cuts Nakamoto Target 58% to $17 on Bitcoin Pullback

TD Cowen slashes Nakamoto Inc. price target by 58% to $17 due to leverage risks amid Bitcoin's decline, though it retains a 'Buy' rating and cites significant upside potential.

Woofun AI reports that TD Cowen has reduced the split-adjusted target price for Nakamoto Inc. (NASDAQ: NAKA) from $40 to $17, representing a 58% decrease, while maintaining a "Buy" rating. The adjustment reflects pressure on the company's highly leveraged capital structure caused by falling Bitcoin prices. Although the new target implies approximately 275% upside from the current stock price of $4.65, the equity remains sensitive to Bitcoin volatility. TD Cowen projects Bitcoin will rebound to $100,000 by the end of 2026, roughly 25% below last October's high of $126,000, and expects Nakamoto to halt further Bitcoin purchases before 2027.

Nakamoto holds 4,467 BTC, valued at approximately $290 million, ranking 22nd among publicly listed companies by Bitcoin holdings.

However, debt and preferred stock financing compress value for common shareholders. Recent financial adjustments include repaying $45 million in debt, extending $105 million in principal to June 2027, reducing financing costs, and approving a $25 million stock buyback. The company has also closed its medical clinic business to focus on Bitcoin media, asset management, and consulting. NAKA's stock has fallen over 71% this year, compared to a 26% decline in Bitcoin.