Investment bank TD Cowen: Strategy increases cash reserves to $2.19 billions to enhance its ability to operate during a "prolonged crypto winter"

BlockBeats News, December 23, according to The Block, bitcoin treasury company Strategy announced on Monday that it has raised approximately $748 million through the sale of common stock, increasing its US dollar cash reserves to $2.19 billion. TD Securities, a subsidiary of investment bank TD Cowen, pointed out that the expanded cash reserves are sufficient to cover about 32 months of the company's interest and dividend payments, helping Strategy maintain stable operations in a more challenging market environment.

TD Securities analyst Lance Vitanza stated: "This move highlights the strength of the company's balance sheet, and even in a prolonged 'crypto winter' scenario, it should alleviate concerns about its ability to continue as a going concern. We believe that enhancing liquidity during periods of stress is always a wise decision, and all stakeholders of Strategy will significantly benefit from these actions."

TD Securities reiterated its "Buy" rating on Strategy and maintained its 12-month target price of $500. Strategy's current share price is around $165, having fallen more than 43% year-to-date.