Investment bank TD Cowen has issued updated analyst coverage on two major cryptocurrency treasury firms, adjusting its price target for Bitcoin-focused Strategy while initiating coverage on Ethereum-centric Sharplink with a buy rating. The moves highlight a growing distinction between passive Bitcoin accumulation and active Ethereum staking as corporate treasury strategies.
For Sharplink, TD Cowen analysts, led by Lance Vitanza, initiated coverage with a “buy” rating and set a price target of $16 per share. This comes as the company's stock traded around $6.42 in after-hours trading, having fallen 62% over the past six months. The analysts argued that Sharplink's operational model, which grows its digital asset holdings through Ethereum staking rewards, offers a distinct advantage. They posited that the firm would generate a “superior staking yield” compared to Ethereum ETFs that offer staking, due to ETF fees and liquidity constraints for asset managers.
Even if the price of ETH remains depressed, the analysts stated that Sharplink's staking revenue should be able to “fully cover operating costs.” The company recently reported that its staking revenue jumped 50% quarter-over-quarter to $15.3 million, generating 14,500 ETH worth $9.4 million. However, it also disclosed a full-year loss of $734 million, driven by a decrease in the value of its Ethereum holdings in the latter half of the year. Consensys CEO and Ethereum co-founder Joe Lubin, Sharplink's Chairman, positioned the firm as a bridge between traditional public markets and Ethereum.
Conversely, TD Cowen trimmed its price target for Strategy to $350 from a previous target of $440 (itself reduced from $550 earlier this year), while reiterating its “buy” rating. Strategy, which holds over $55 billion worth of Bitcoin, saw its stock price edge up to nearly $129. The analysts stated the updated target reflects a lower multiple on the company's projected “BTC $ gain”—a key performance indicator tracking the dollar value added to its Bitcoin holdings—and lower expectations for future Bitcoin prices.
The bank's analysis frames a clear divergence: Strategy represents a passive, leveraged exposure to Bitcoin's price direction, while Sharplink offers an active, operational model that can compound assets through staking rewards, providing a potential buffer in a down market.
