TD Cowen: Strategy Equity Bitcoin Cycle Mechanism Supports Its Premium, Maintains Buy Rating

According to ChainCatcher, citing The Block, investment bank TD Cowen has pointed out that Strategy’s equity-to-Bitcoin cycle mechanism provides a reasonable basis for its net asset value premium. Despite the risks, TD Cowen maintains a buy rating.

Strategy purchased 69,140 Bitcoins in the second quarter and now holds 597,325 coins, surpassing TD Cowen’s projections and resulting in a premium of approximately 63% for its stock relative to net asset value. TD Cowen maintains a target price of $590 per share, regards Strategy as the highest-quality listed spot Bitcoin investment proxy, and expects its holdings to reach 850,000 Bitcoins by 2027, accounting for 4.1% of the total supply.