Cowen: Strategy Positioned for Bitcoin Crash Recovery; Shares Extend 18.4% Weekly Decline
TD Cowen says Strategy is better positioned than ever to weather Bitcoin’s 20% slide, citing diversification from its software unit and a reduced breakeven price per coin. After Q4 earnings on Feb. 5 revealed Bitcoin accounting drove the report, shares fell 2%, extending an 18.4% weekly decline.
1. Cowen Analyst Outlook
TD Cowen upgraded its outlook on Strategy, highlighting the company’s reduced breakeven cost per Bitcoin – now near $30,000 – and noting that its software division provides a stable revenue buffer. The firm believes these factors will allow Strategy to absorb further crypto volatility and benefit from any market rebound.
2. Q4 Earnings and Market Reaction
In its Feb. 5 Q4 report, Strategy’s results were dominated by mark-to-market Bitcoin losses, overshadowing its software performance. Shares declined about 2% on the news, adding to an 18.4% drop over the prior week as investors weighed the impact of crypto accounting swings on overall valuation.