Strategy is positioned for a ‘prolonged crypto winter’ after boosting cash reserve, TD Cowen says
The Block
Strategy increased its cash reserve to $2.19 billion, positioning it well for a prolonged crypto winter, according to TD Cowen.Summary
Bitcoin treasury company Strategy (MSTR) raised approximately $748 million through common share sales, boosting its U.S. dollar reserve to $2.19 billion. TD Securities analysts noted this expanded reserve covers interest and dividend obligations for about 32 months, strengthening the balance sheet against a prolonged 'crypto winter' scenario and alleviating viability concerns. TD Securities maintained a buy rating with a $500 12-month price target, citing Strategy's embedded leverage to bitcoin price activity. Strategy, the largest bitcoin treasury company holding over 671,000 bitcoin, is seen as having successfully shored up liquidity without disrupting markets.
(Source：The Block)