Published: November 19th, 2025
Investment Bank TD Cowen published a report this week that points to stronger issuance activity at leading digital asset treasury (DAT) firm Strategy, despite a steep drop in the company's implied Bitcoin premium.
Strategy's Bitcoin accumulation model remained intact through last week's volatility, the bank said. Led by Bitcoin uber-bull Michael Saylor, the firm continued to add BTC at a faster clip, backed by demand for both its new EUR-denominated preferred shares and its variable-rate preferred shares.
In a note to investors, the firm's analysts expressed surprise at the positive market response to Strategy's variable-rate preferred shares, even in the face of a “firmly negative trajectory” in the price of Bitcoin.
The note, released on Monday, maintained a buy rating and a $530 price target for Strategy's common stock. The bank described the former software firm (previously called MicroStrategy before it re-positioned as a DAT) as pioneering a new business model by positioning itself as the first publicly traded Bitcoin treasury and offering investors exposure to the asset on a leveraged basis.
Preferred shares are a central plank in Strategy's funding model, allowing it to raise capital without immediately issuing common stock, thereby avoiding direct dilution. Its variable-rate Stretch Prefs, which adjust their dividend based on market conditions, are designed to trade near par and appeal to investors who want a predictable yield rather than equity-style volatility. Both instruments, Cowen noted, give Strategy steady financing that it can convert directly into Bitcoin.
This issuance engine continued to hum despite the week's market turbulence. Strategy raised more cash than expected from its recent IPO and rapidly deployed roughly $700m into Bitcoin, according to Cowen's estimates. The firm still posted Bitcoin-per-share gains even as both BTC and its stock declined.
Investors, however, were unimpressed and marked Strategy's shares lower. The stock slid to $195.39 on Monday, dipping below $190 intraday and coinciding with the broader market pullback in risk assets. Bitwise analysts described the downturn as a “risk-off phase” that has dragged Bitcoin down to April levels and pulled major tokens and tech equities lower. They attributed the move to a “rethink of liquidity needs,” driven in part by a lower probability of a December US interest-rate cut.
Even so, analysts argue that Strategy's issuance patterns reflect the mechanics of its model rather than sentiment-driven trading. Tiger Research said Strategy continues tapping a separate pool of yield-focused investors who prefer the relative stability of preferred shares. The company's ability to adjust dividend rates gives it “a lot of scope” to build demand for future issuance, they said.
Whether the model can continue generating Bitcoin-per-share gains if Strategy's stock premium keeps tightening remains a key question. Tiger's analysts wrote that continued accretion depends mainly on the firm's ability to buy-up Bitcoin using non-dilutive forms of capital such as preferred shares.
Bitcoin and other major cryptocurrencies continued to weaken on Monday as macroeconomic nerves spread through markets. Fresh doubts over US interest-rate policy, missing signals from delayed October jobs and inflation data, and concerns about slowing economic activity all contributed to the selloff. Investor unease about high levels of spending on artificial-intelligence projects at Google, Microsoft and other tech giants added to the pressure.
Bitcoin traded near $92,220, down 2.28% over 24 hours and at its lowest point since late April. It has fallen more than 14% in the past two weeks, erasing its gains for the year. Bitwise analysts said the decline reflects a convergence of headwinds: weaker expectations for rate cuts, risk-off contagion from the AI sector, and a broader reduction in liquidity.
Other coins followed suit. Ethereum hovered around $3,000, down 2% since Sunday and at a four-month low after briefly touching $2,960. Solana, Dogecoin and XRP fell by 4.4%, 3.7% and 2%, respectively. Traditional markets were also in retreat: the Nasdaq and S&P 500 each fell around 1%.
Liquidations added to the slide. Coinglass reported that more than $900m in positions were cleared over the previous 24 hours, including over $540m in longs. TD Cowen noted that some large holders and miners had been selling into brief strength, and once prices broke through key support levels, leveraged positions unwound quickly across derivatives markets.
Sentiment in prediction markets reflected the shift. On Polymarket, 60% of participants expected Ethereum to fall to $2,500 rather than rise to $4,000, a reversal from the previous week's trendlines.
Against that backdrop, Strategy announced its largest Bitcoin purchase in more than four months, with roughly $835m deployed into the asset, according to a company press release. The Virginia-based firm now holds nearly 650,000 BTC, worth around $61bn at time of writing. Bitcoin was recently trading around $94,000, down 11% over the past week.
Strategy's stock continued its decline alongside the broader market, falling 1.5% on Monday to just under $197. Shares have dropped 31% over the past month as Bitcoin has retreated from all-time highs.
Despite the slide, the company continues its accumulation strategy. Last week, Executive Chairman Michael Saylor said buying activity had accelerated even as Bitcoin hovered near a six-month low. He also dismissed speculation that the firm was selling parts of its holdings.
Strategy's DAT approach has been to raise capital through preferred structures and then convert it directly into Bitcoin. Issuing preferred shares at scale, even during sharp drawdowns, underpins its appeal to investors seeking synthetic Bitcoin exposure.
But the model's durability will continue to be tested by persistent volatility in both Bitcoin and broader equity markets. Issuance depends on sustained demand from yield-oriented investors, while Bitcoin-per-share accretion depends on maintaining access to non-dilutive capital. For now, both conditions remain intact, even if investor sentiment elsewhere is faltering.
Strategy, undeterred, keeps buying.
“We bought bitcoin every day this week,” Saylor said on X on Tuesday.
