TD Cowen Investment Bank: Strategy Cash Reserve Increased to $21.9 Billion to Enhance Resilience During 'Extended Crypto Winter'
BlockBeats News, December 23rd, According to The Block, Bitcoin Treasury Company Strategy stated on Monday that the company raised approximately $7.48 billion through the sale of common stock, increasing its US dollar cash reserves to $21.9 billion. TD Securities, a subsidiary of investment bank TD Cowen, pointed out that the expanded cash reserves are sufficient to cover the company's about 32 months of interest and dividend payments, helping Strategy maintain robust operations in a more challenging market environment.
TD Securities analyst Lance Vitanza stated: "This move highlights the solidity of the company's balance sheet, which should be able to alleviate market concerns about its ongoing operational capacity even in a long-term 'crypto winter' scenario. We believe that enhancing liquidity during times of stress is always a wise move, and all stakeholders of Strategy will significantly benefit from these actions."
TD Securities reiterated its "Buy" rating on Strategy and maintained its target price of $500 for the next 12 months. Strategy's current stock price is around $165, with a year-to-date decline of over 43%.
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