MicroStrategy's Euro-Denominated Offering and Bitcoin Forecast

Investment bank TD Cowen has published a new report focusing on Bitcoin and MicroStrategy (now referred to as Strategy), the company holding the largest institutional amount of BTC.

According to The Block, Strategy's report first assessed the impact of its latest move, the euro-denominated preferred stock offering. Second, it announced its year-end Bitcoin price forecast.

At this point, it was estimated that TD Cowen's analysis suggests Strategy would add 6,720 BTC to the company's treasury with the new euro-denominated preferred stock offering.

TD Cowen analysts Lance Vitanza and Jonnathan Navarrete stated that Strategy's initial offering of perpetual Stream preferred stock, priced at €80 per share last week, signifies the company's entry into euro-based Bitcoin-backed credit markets and establishes a new financing channel. They predicted that the funds generated from the euro offering would be utilized to purchase 6,720 BTC at an estimated average price of $104,500.

Fundamental, Bullish, and Bearish Scenarios for Bitcoin

In addition to the specific forecast for MicroStrategy's purchases, TD Cowen stated that its base scenario for Bitcoin projects a price of $141,277 by the end of the year, December 31.

For the bear and bull scenarios, the analysts predicted a potential high of $160,000 and a low of $60,000.

The analysts noted that the base case model is predicated on Strategy purchasing approximately $4 billion worth of Bitcoin on a quarterly basis.

The bull scenario is based on a purchase exceeding $4.5 billion, while the bear scenario is contingent upon the suspension of purchases "due to market conditions or a specific loss of access to capital markets."