TD Cowen Backs Sharplink’s Ethereum Strategy While Trimming Outlook for Bitcoin Buyer Strategy

TD Cowen analyst Lance Vitanza initiated coverage of Sharplink with a buy rating on April 9, setting a price target of US$16 (AU$23.20) and positioning the company’s Ethereum-focused treasury strategy as an alternative to Bitcoin-heavy corporate accumulation models.

The firm’s latest quarterly results showed staking revenue rising 50% quarter-on-quarter to US$15.3 million (AU$22.19 million), up from US$10.3 million (AU$14.94 million). Sharplink generated 14,500 ETH, valued at approximately US$9.4 million (AU$13.63 million), through staking during the period. 

Vitanza argued this income stream could cover operating costs even in a weaker price environment, providing a self-funding mechanism absent in Bitcoin-only treasury strategies. TD Cowen’s model assumes Ethereum reaches US$3,650 (AU$5,292.50) by December 2026.

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A Full-Year Loss

Sharplink reported a full-year loss of US$734 million (AU$1.06 billion), largely reflecting a decline in Ethereum’s market value in the second half of the year. This was characterised as a non-operational, mark-to-market loss rather than a deterioration in underlying business performance. 

Vitanza described firms like Sharplink as leveraged exposure to crypto assets but noted that active treasury management, including staking and minority investments, may generate higher returns than passive holdings.

In the same note, TD Cowen maintained a buy rating on Strategy (formerly MicroStrategy) but reduced its price target to US$350 (AU$507.50) from US$440 (AU$638), following an earlier cut from US$550 (AU$797.50) earlier in 2026. 

Basically, the revisions reflect lower valuation multiples tied to projected Bitcoin gains and more conservative price assumptions.

All in all, Strategy holds more than US$55 billion (AU$79.75 billion) in Bitcoin (BTC), making it the largest corporate holder. The repeated target reductions are just a mere cautious outlook on the sustainability of pure accumulation strategies. 

Anyway, TD Cowen’s analysis points to a shift across institutions and the sentiment toward yield-generating treasury models.

Also, Sharplink shares traded around US$6.42 (AU$9.31) in after-hours activity, implying roughly 150% upside to the target. The stock has declined 62% over the past six months, as per Yahoo Finance data, a move Vitanza attributed partly to broader weakness across crypto-linked equities rather than company-specific deterioration.

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