TD Cowen report: Bitcoin represents a 'superior store of value' compared to other forms of money

Odaily Planet Daily News Investment bank TD Cowen is particularly interested in MicroStrategy's Bitcoin adoption model, saying that Bitcoin represents a "superior store of value" compared with other forms of currency. A report published by TD Cowen stated that MicroStrategy used effective leverage to convert its residual cash flow into Bitcoin. The move started as a defensive move to preserve the value of its assets, but quickly turned into an opportunistic strategy aimed at increasing shareholder value. "We believe this hybrid enterprise strategy represents a paradigm shift," the report added. The report also said that as adoption increases and demand grows, Bitcoin’s price could rise by 127%, surpassing its previous all-time high (nearly $70,000). On the other hand, if regulators continue to clamp down on the asset class, the downside scenario would cause BTC prices to plunge again, potentially back down to $15,000. The report identified several important factors as potential drivers that could have a positive impact on the value of Bitcoin, including possible SEC approval of a spot Bitcoin ETF, progress in Lightning Network development, and possible FASB/GAAP treatment of Bitcoin holdings. Accounting changes, and the upcoming Bitcoin halving event. (Coin Edition)