Strategy’s bitcoin premium heading toward ‘crypto winter’ lows, TD Cowen says
Strategy's bitcoin premium is declining toward 2021-2022 lows, though TD Cowen remains bullish on the stock.Summary
TD Cowen Research Group noted that Strategy's (MSTR) bitcoin premium—the stock price relative to its net asset value of bitcoin holdings—is falling toward levels seen during the 2021-2022 'crypto winter.' This decline occurred as the company did not issue shares or purchase new bitcoin recently. Despite this compression from prior peaks, TD Cowen analysts maintain a 'buy' rating and a $535 price target for MSTR, viewing it as a reasonable outcome within a year based on projected bitcoin holdings. A significant risk highlighted is the expected removal of Strategy from MSCI indices in February, which could force substantial passive-fund selling, though the analysts argue this is misguided as Strategy is an operating software company utilizing Bitcoin as productive capital, not just a fund.
(Source：The Block)