Summary
- TD Cowen announced it has assigned a 'Buy' rating to Strategie and maintained a target price of $590.
- Strategie's stock price trades at a 63% premium to its net asset value (NAV) in Bitcoin, but this is considered justified due to the structure of immediate Bitcoin buying.
- Expectations for Bitcoin's price, potential inclusion in the S&P 500, clarity of U.S. tax regulations, and increased institutional demand could drive further upside for Strategie.
TD Cowen assigned a 'Buy' rating to Strategie and kept its target price at $590. This is 45% higher than Strategie's closing price on the previous day.
According to The Block on the 1st (local time), TD Cowen stated in its report, "We are setting a Buy rating on Strategie and present a target price of $590." The report continued, "Strategie's stock price currently trades at a 63% premium to its net asset value (NAV) in Bitcoin, but this is justified," adding, "because every share issuance leads directly to instantaneous Bitcoin purchases, creating a virtuous cycle."
Furthermore, the report gave a positive outlook on the continued upward potential of Strategie. It stated, "If our projection for Bitcoin to reach $128,000 by the end of this year holds, Strategie is also expected to rise further," explaining, "factors such as a potential inclusion in the S&P 500, regulatory clarity on U.S. taxation, and growing institutional demand for Bitcoin could accelerate its upside."
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
