TD Cowen Says Strategy's Bitcoin-Buying Engine Remains Intact Despite Market Volatility

💡 DMK Insight

TD Cowen’s $535 target reflects solid demand for preferred shares, but here’s the catch: rising Bitcoin per share isn’t enough to offset the narrowing NAV premium. For traders, this situation signals a potential divergence between asset performance and market valuation. The narrowing NAV premium could indicate that investors are becoming cautious, possibly anticipating a correction or a slowdown in Bitcoin’s momentum. If Bitcoin’s price continues to rise, it might not translate into the same enthusiasm for preferred shares, which could lead to volatility in this segment. Keep an eye on the $535 target as a resistance level; a breakout above could signal renewed bullish sentiment, while a failure to hold could prompt profit-taking. Also, watch for Bitcoin’s price action closely—if it starts to falter, it could drag down the preferred shares as well. The key here is to monitor the correlation between Bitcoin’s performance and the NAV premium closely, as any significant shifts could create trading opportunities or risks.