① Amidst the volatility in the crypto market, Strategy's Bitcoin accumulation strategy remains unchanged, with $835.6 million worth of Bitcoin purchased in the past week; ② A report by TD Cowen indicates that Strategy remains an attractive investment target for those looking to access Bitcoin investment opportunities; ③ Strategy is currently still able to consistently achieve growth in earnings per Bitcoin.
According to a new report from the long-established US investment bank TD Cowen, despite the recent volatility in the crypto market, Strategy, a major Bitcoin holder, has maintained its Bitcoin accumulation strategy.
Strategy disclosed on Monday that it purchased $835.6 million worth of Bitcoin in the seven days ending last Sunday (November 16), marking its largest single-week purchase since July of last year. This brings its total Bitcoin holdings to 649,870 coins, with a total value of approximately $61.7 billion.
In response, TD Cowen stated that Strategy continues to increase its Bitcoin holdings at a faster pace, thanks to increased demand following its large-scale financing, including newly issued euro-denominated preferred shares and floating-rate preferred shares.
Adhere to the original strategy
On Monday (November 17), TD Cowen analysts Lance Vitanza and Jonnathan Navarrete wrote in a newly released research report that Strategy, as the first publicly listed Bitcoin treasury company, represents a completely new business model that allows it to combine with "the market's demand for volatility and returns" and incorporate Bitcoin in a "efficiently leveraged manner."
The two analysts maintained their "buy" rating on Strategy's common stock and set a price target of $535.
Furthermore, they added, "What surprised us was that the company still issued floating-rate preferred stock despite the significant drop in Bitcoin prices. Strategy remains an attractive investment for those looking to access Bitcoin investment opportunities."
The issuance of preferred stock allows Strategy to raise capital without immediately issuing common stock, while the floating-rate preferred stock pays adjustable dividends, which helps keep its share price near par value. Both instruments provide stable and predictable funding, which Strategy can directly convert into Bitcoin, enabling it to continue investing with minimal equity dilution.
Ryan Yoon, a senior analyst at Tiger Research, also believes that "Strategy has successfully attracted a group of yield-focused investors who want lower volatility than common stocks. This model appears sustainable because the company still has 'broad autonomy' to adjust the dividend yield to ensure stock issuance."
Crypto market continues to decline
This week, Bitcoin continued its decline from last week. On Tuesday (November 18), Bitcoin fell below $90,000, erasing all of the cryptocurrency's gains for 2025 after a month-long downtrend. Furthermore, options traders are betting on further declines in Bitcoin, with recent demand for put options at strike prices of $85,000 and $80,000 dominating.
This decline coincides with a broader shift of safe-haven funds, which has caused Bitcoin prices to fall back to levels seen in April of last year and led to declines in the prices of major tokens and tech stocks.
On Monday, Strategy's stock continued to fall during the US trading session, eventually closing at $195.42 per share, after dropping as low as $189.53 at one point during the session.
However, TD Cowen's report also mentioned that Strategy raised more funds than expected and invested them all in the Bitcoin market. Even when Bitcoin prices and the company's stock prices fell, Strategy was still able to achieve growth in earnings per Bitcoin.
According to TD Cowen, Strategy raised approximately $704 million in its latest euro-denominated preferred stock IPO this month, which will be used to purchase approximately 6,890 bitcoins.
Macroeconomic factors exert pressure
However, broader economic forces are dragging down overall market sentiment.
Adam McCarthy, an analyst at research firm Kaiko, said that Federal Reserve policy expectations and artificial intelligence... Bubble concerns have become one of the two major headwinds for cryptocurrencies and risk assets before the end of the year.
Thomas Perfumo, a global economist at cryptocurrency exchange Kraken, also pointed out that this risk-averse tone has spread to the cryptocurrency market, and sentiment remains fragile, reflecting broader macroeconomic anxieties rather than structural flaws.
The cryptocurrency market has been in turmoil since the massive liquidation wave in early October, which wiped out approximately $19 billion in cryptocurrency assets. According to Coinglass data, open interest in cryptocurrency futures contracts has declined, particularly for smaller tokens like Solana, where open interest has more than halved.
(Article source: CLS)
