TD Cowen Cuts Strategy Target but Starts Sharplink at Buy on Ethereum Treasury Model

• TD Cowen trimmed its price target for Strategy while maintaining a positive stance on the company’s Bitcoin treasury model.
• The bank also initiated coverage on Sharplink with a buy rating, citing its ability to grow digital assets through Ethereum staking.

TD Cowen is drawing a sharper line between two crypto treasury models, staying constructive on Bitcoin heavyweight Strategy while arguing that Ethereum-focused Sharplink may offer a more flexible setup from here.

The investment bank reduced its price target on Strategy, the $55 billion Bitcoin treasury pioneer formerly known as MicroStrategy, even as it kept a broadly positive view on the company. At the same time, TD Cowen analysts led by Lance Vitanza initiated coverage on Sharplink with a buy rating and a $16 price target.

Strategy stays central, but the valuation debate is tightening

The cut to Strategy’s target does not amount to a call against the stock. It looks more like an acknowledgement that even strong conviction names need to be re-marked when sentiment, funding conditions or balance-sheet expectations shift.

Strategy remains the defining corporate Bitcoin vehicle, and that still matters. Its identity is closely tied to the simple idea that accumulating Bitcoin at scale can create equity upside for shareholders who want leveraged exposure through public markets.

But that model is also fairly singular. It depends heavily on the direction of Bitcoin itself and on how much premium investors are willing to attach to a listed proxy.

TD Cowen’s move suggests the bank still sees value there, just not quite as much as before.

Sharplink gets the nod for a different treasury play

Sharplink, by contrast, is being framed as something more operational. The company, whose shares traded around $6.42 in after-hours trading, has fallen 62% over the past six months, which gives the new buy rating a fairly contrarian edge.

TD Cowen’s case appears to rest on structure as much as price. Unlike firms that simply hold crypto on balance sheet, Sharplink is set up as an operating company that can expand its digital asset base through staking. In Ethereum, that means participating in network validation and earning rewards rather than relying only on price appreciation.

That distinction is important. A Bitcoin treasury is mostly passive by design. An Ethereum treasury can, at least in theory, compound. For investors deciding between the two, the question is no longer just which token they prefer. It is which treasury model gives them more than exposure alone.