TD backs Sharplink cuts Strategy price target

TD Cowen has cut its price target for Strategy to $350 while maintaining a “buy” rating, and initiated coverage on Sharplink with a $16 target.

The revised outlook reflects lower expectations for Bitcoin prices and a reduced valuation multiple on Strategy’s key “BTC $ gain” metric, which tracks value added through Bitcoin acquisitions.

Sharplink, meanwhile, was highlighted for its staking-driven model, with analysts arguing it could generate “superior staking yield” compared to Ethereum ETFs due to lower fees and fewer liquidity constraints.

The company reported staking revenue of $15.3 million in the latest quarter, up 50% from $10.3 million, and generated 14,500 Ethereum worth about $9.4 million during the period.

Despite this growth, Sharplink posted a full-year loss of $734 million, largely due to a decline in the value of its Ethereum holdings.

The firm is positioning itself as a bridge between traditional markets and Ethereum, with chairman Joe Lubin emphasising its role in connecting public equity investors to digital assets.

Strategy, which holds over $55 billion in Bitcoin, saw its shares trade near $129, with TD Cowen noting that future upside will depend heavily on Bitcoin price performance and accumulation strategy.

At the time of reporting, Bitcoin price was $71,787.35.