TD Cowen Reports Strategy’s Bitcoin Purchases Have Little Price Impact

TD Cowen's research indicates that Strategy’s large-scale bitcoin (BTC) purchases have minimal impact on its price. Key points include:

Strategy's recent issuance of 1.8 million shares raised $842 million, allowing the purchase of 6,556 bitcoins, increasing its bitcoin yield to 12.1%.
These purchases represent only 3.3% of weekly trading volume and 8.4% over 27 weeks, primarily due to sporadic buying surges.
The correlation between Strategy's purchases and BTC price is weak, with coefficients of 25% for weekly buy volume and 28% for price changes.
Despite claims that it buys more bitcoin than mined, secondary trading activity has outpaced mining by nearly 20 times in the last six months.
Strategy's bitcoin holdings increased by 306% since early 2023, generating an estimated gain of $600 million for shareholders.
The company has a remaining ATM capacity of $1.53 billion and plans to continue its buying strategy without affecting market prices significantly.

Analysts conclude that while Strategy may not influence BTC prices substantially, it effectively builds value for its shareholders.