TD Cowen Report: Bitcoin represents "superior value storage" compared to other forms of currency.
2023-07-28 16:02
Odaily News - Investment bank TD Cowen has shown a particular interest in MicroStrategy's adoption of Bitcoin, stating that Bitcoin represents a "superior store of value" compared to other forms of currency.
In a report released by TD Cowen, it was noted that MicroStrategy has utilized leverage to convert its excess cash flow into Bitcoin. Initially a defensive measure to preserve the value of their assets, it has quickly transformed into an opportunistic strategy aimed at increasing shareholder value. The report added, "We believe that this hybrid corporate strategy represents a paradigm shift."
The report also suggests that as adoption rates and demand increase, the price of Bitcoin might rise by 127%, surpassing its previous all-time high of nearly $70,000. On the other hand, if regulatory bodies continue to suppress this asset class, a downward scenario could lead to another sharp decline in BTC prices, possibly dropping to $15,000.
Several key factors were identified in the report as potential drivers that could positively impact the value of Bitcoin, including the potential approval of a Bitcoin ETF by the SEC, progress in the development of the Lightning Network, accounting changes by FASB/GAAP regarding Bitcoin holdings, and the upcoming Bitcoin halving event. (Coin Edition)
In a report released by TD Cowen, it was noted that MicroStrategy has utilized leverage to convert its excess cash flow into Bitcoin. Initially a defensive measure to preserve the value of their assets, it has quickly transformed into an opportunistic strategy aimed at increasing shareholder value. The report added, "We believe that this hybrid corporate strategy represents a paradigm shift."
The report also suggests that as adoption rates and demand increase, the price of Bitcoin might rise by 127%, surpassing its previous all-time high of nearly $70,000. On the other hand, if regulatory bodies continue to suppress this asset class, a downward scenario could lead to another sharp decline in BTC prices, possibly dropping to $15,000.
Several key factors were identified in the report as potential drivers that could positively impact the value of Bitcoin, including the potential approval of a Bitcoin ETF by the SEC, progress in the development of the Lightning Network, accounting changes by FASB/GAAP regarding Bitcoin holdings, and the upcoming Bitcoin halving event. (Coin Edition)
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