TD Cowen: Strategy is better equipped than ever to weather the Bitcoin crash and capitalize on the recovery.

PANews reported on February 6th that, according to The Block, investment bank TD Cowen released a report stating that Bitcoin treasury firm Strategy is financially more resilient than ever to the current market downturn and will benefit from the recovery. The report maintains its target price of $440 and a "buy" rating, while also maintaining its price forecasts for Bitcoin to reach $177,000 by the end of 2026 and $226,000 by the end of 2027.

Analysts point out that Strategy's balance sheet and financing tools are designed for such market conditions. The company currently holds $2.25 billion in cash reserves, sufficient to cover approximately $900 million in fixed costs for nearly 17 months and to cover the $1 billion in convertible notes that can be redeemed in 2027. They believe that the company will not be forced to sell Bitcoin or change its operating strategy under "any reasonable scenario," with the earliest possible point of financial pressure being March 2028. The report emphasizes that Strategy's stock price volatility is a design feature: the common stock is intended to achieve approximately 1.5 times the volatility of Bitcoin, thus typically outperforming Bitcoin during uptrends and underperforming it during downtrends. This leverage effect is part of its core product proposition.