TD Cowen Says Strategy's Bitcoin-Buying Engine Remains Intact Despite Market Volatility

TD Cowen has affirmed that Strategy’s Bitcoin acquisition model remains robust despite recent market fluctuations. The investment bank maintained a buy rating with a price target of $535, noting a significant increase in Strategy’s preferred-share activity, particularly in variable-rate issuances amid a drop in Bitcoin prices. Approximately $704 million from Strategy's euro-denominated preferred IPO was allocated to purchase around 6,890 BTC. Analysts observed that the company continues to attract yield-focused investors, benefiting from its ability to issue preferred shares that do not dilute common stocks. This model allows Strategy to accumulate Bitcoin efficiently, even in volatile markets, thus preserving its operational independence from common stock performance. As Bitcoin's price dropped to about $92,200, analysts emphasized that Strategy's continued Bitcoin gains are fueled by non-dilutive capital sources. Observers believe this structure allows for sustained growth and resilience regardless of common stock market conditions.

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