## TD Cowen Defends MicroStrategy's Valuation TD Cowen, a U.S. investment bank, has weighed in on the discussion surrounding MicroStrategy's valuation, asserting that evaluating the company solely on its Bitcoin (BTC) holdings is an oversimplification. The firm argues that the current market capitalization of $124.3 billion, with a 72.6% premium over its BTC net asset value (NAV), is justified. ## Unique Fundraising Strategy Drives Value According to The Block, TD Cowen analyst Lance Vitanza highlights MicroStrategy's unique ability to generate BTC revenue. This is achieved through raising funds via preferred stock and convertible bonds at a low blended interest rate of 0.421% per year. This strategy, Vitanza argues, is difficult for other investors and competing companies to replicate, contributing significantly to MicroStrategy's enterprise value. ## Bullish Outlook for MicroStrategy's Bitcoin Holdings TD Cowen maintains a target price of $680 for MicroStrategy and forecasts the company will hold 900,000 BTC by 2027. This bullish outlook further supports their assessment that MicroStrategy's enterprise value isn't simply a "bubble" but reflects a strategic advantage in accumulating and managing Bitcoin. ```

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