Strategy is ‘better positioned than ever’ to weather bitcoin crash and benefit from recovery, TD Cowen says

TD Cowen analysts assert that Strategy (MSTR) is "better positioned than ever" to endure the current bitcoin downturn and benefit from a potential recovery, citing its robust balance sheet and funding toolkit. They note that the stock's high-beta correlation to bitcoin, designed to be about 1.5 times more volatile, is intentional. The analysts argue that Strategy has the liquidity, including a $2.25 billion cash reserve, to withstand a severe bitcoin rout without being forced to sell its holdings or alter its strategy, projecting solvency issues wouldn't arise until March 2028 at the earliest. TD Cowen maintained a buy rating with a $440 price target, expecting bitcoin to reach a new all-time high by Q3 2026. This view aligns with Strategy's CEO, who stated bitcoin would need to fall to around $8,000 and stay there for years before debt servicing becomes a meaningful issue.

(Source：The Block)