TD Cowen Maintains Buy Rating on Strategy Amid Continued Bitcoin Accumulation
TD Cowen continues to maintain a buy rating and $535 price target for Strategy's common stock (MSTR) despite ongoing market volatility. Strategy has deployed approximately €704 million from its euro-denominated preferred IPO to purchase around 6,890 BTC. This preferred-share program, which includes variable-rate preferred shares, has surged and remains accretive even as the Bitcoin premium narrows.
The company achieves Bitcoin gains per share by buying BTC with non-dilutive capital, despite lower Bitcoin prices and declines in the stock. Preferred shares allow Strategy to raise capital without immediate issuance of common stock, with adjustable dividends designed to keep preferred shares near par value. Both the preferred and common stock funding methods convert into Bitcoin.
These moves take place in a wider market context marked by a risk-off rotation, with Bitcoin's price returning to levels last seen in April, and a recalibration of liquidity expectations that has impacted significant tokens and technology equities. Observers note that Strategy successfully taps a distinct pool of yield-focused investors seeking less volatility than common stock offers, supporting the company's sustainable accumulation of Bitcoin.
Strategy is recognized as the first publicly traded Bitcoin Treasury Company, merging market appetite for volatility and return on an effectively leveraged basis into Bitcoin.
