TD Cowen, the institutional arm of TD Securities, has introduced a significant new category for investors: Digital Asset Treasuries (DATs). This formal step shifts the focus from price speculation to an institutional-level framework for assessing Public Bitcoin Treasury Companies (PBTCs), which are firms actively managing Bitcoin as a core treasury asset. For asset managers and executives, this represents a structural evolution, signaling the readiness of global finance infrastructure to support large-scale Bitcoin adoption.
New structure for institutional Bitcoin exposure
TD Cowen’s report distinguishes between passive Bitcoin holders and PBTCs, which are operating companies managing Bitcoin holdings as productive capital. Unlike exchange-traded products (ETPs) that often lose Bitcoin value to management fees over time, PBTCs have mechanisms in place to potentially grow their Bitcoin-per-share metrics by leveraging institutional financial tools and market dynamics.
These companies often access financing options such as convertible debt or preferred stock, which are generally unavailable to individual investors. The report compares the PBTC approach to the development of raw land, arguing that active management adds measurable value and opens opportunities to use capital-market effects to accumulate more Bitcoin at accretive rates.
Founded in the 2020s, TD Cowen operates as an investment banking division under Toronto-Dominion Bank, focusing on market strategies and research for institutional clients. Their formalization of PBTCs comes as investor interest in digital assets has grown among corporate and wealth management sectors.
Bitcoin metrics, gold parity model, and industry phases
To create a rigorous valuation environment, the report introduces new Bitcoin-centric key performance indicators: BTC Yield (tracking the rate of increase in Bitcoin per fully-diluted share), BTC Torque (measuring the potential for earnings growth from various capital structures), and BTC Rating (indicating a company’s asset coverage in Bitcoin against senior liabilities).
TD Cowen’s analysis leans heavily on growing skepticism around the stability of fiat currencies, citing the persistent expansion of government debt and the risk of devaluation. The bank’s projection model suggests Bitcoin could reach a total market capitalization of $8 trillion by 2035. Should Bitcoin achieve price parity with the world’s gold reserves, the estimate points to a value near $1.1 million per Bitcoin, based on today’s dollar value.
The report describes the industry as currently in the “Accumulation Phase,” in which companies focus on strategic Bitcoin acquisition. Over time, TD Cowen expects a transition to an “Operating Phase,” where PBTCs evolve into Bitcoin-native banking entities—offering custody, loans, and financial services denominated in Bitcoin itself.
Highlighted firms in this emerging equity category include Strategy (MSTR), Strive (ASST), and Nakamoto (NAKA). These organizations blend treasury management with broader operational strategies in the digital asset ecosystem.
TD Securities positions this research as the foundational step needed to make Bitcoin a mainstream component within traditional finance. By providing new metrics and frameworks, the firm aims to elevate the discussion from cryptocurrency speculation to systematic capital allocation using Bitcoin.
A comment from TD Cowen summarizes the importance of this development:
With comprehensive modeling and standardized metrics, institutional risk committees can now view widespread Bitcoin adoption as an expected scenario, not a remote possibility.
As the “Bitcoin Bank” concept gains traction, TD Cowen’s approach lays the groundwork for PBTCs to be evaluated and adopted by mainstream financial institutions globally.
