TD Cowen: MicroStrategy financially sound despite BTC downturn

TD Cowen has assessed that MicroStrategy has the financial structure to withstand a Bitcoin bear market and is well-positioned for significant upside if the market rebounds, The Block reports. In a report, the financial services firm explained that MicroStrategy's common stock is designed to rise more sharply than Bitcoin during upswings and fall more significantly during downturns. The company's core model is centered on offering a security that amplifies Bitcoin's volatility, with its common stock engineered to have approximately 1.5 times the volatility of BTC. This correlation has been consistently maintained over both the short and long term and is expected to continue as long as the company's BTC acquisition strategy persists. TD Cowen maintained its price target for MicroStrategy at $440 and projected that Bitcoin could rise to $177,000 by 2026.