TD Cowen analysts have reiterated a "buy" rating for Bitcoin treasury firm Strategy, while also initiating coverage on Ethereum treasury company Sharplink with a "buy" recommendation. Analysts noted that Ethereum staking rewards are projected to cover all of Sharplink’s operating costs, even with subdued ETH prices.
TD Cowen initiated Sharplink coverage with a $16 price target. Unlike firms focused solely on Bitcoin, Sharplink is structured as an operating company that can grow its digital asset holdings through staking, earning Ethereum rewards. Analysts believe Sharplink will offer a superior staking yield compared to Ethereum ETFs due to management fees and liquidity constraints for asset managers.
Sharplink recently reported a 50% quarter-over-quarter increase in staking revenue to $15.3 million. Despite a full-year loss of $734 million, largely due to the decline in its Ethereum holdings' value, the company's Chairman, Joe Lubin, sees Sharplink positioned as a bridge between traditional markets and Ethereum.
Separately, TD analysts trimmed Strategy's price target to $350 but maintained its "buy" rating. Strategy holds over $55 billion in Bitcoin. The adjusted target reflects a lower multiple on projected "BTC $ gain" and revised expectations for future Bitcoin prices.