Analyst cuts 60% price target for popular Bitcoin stock

Crypto-treasury stocks person been sliding ever since JPMorgan warned that companies holding ample amounts of integer assets, including MicroStrategy, could beryllium removed from the MSCI index.

Cantor Fitzgerald has slashed its terms people for Michael Saylor’s MicroStrategy, that is 1 of the astir fashionable Bitcoin stock.

MicroStrategy is wide viewed arsenic the astir fashionable Bitcoin banal due to the fact that the institution holds much Bitcoin connected its equilibrium expanse than immoderate different nationalist steadfast implicit 650,000 BTC worthy $60 billion.

Related: Analyst downgrades MicroStrategy amid higher dilution

Its stock terms moves astir wholly with Bitcoin, making it a de-facto “leveraged BTC proxy” for stock-market investors who privation Bitcoin vulnerability without buying crypto directly.

Saylor’s assertive accumulation strategy and nationalist promotion of Bitcoin person made MSTR the flagship Wall Street conveyance for BTC exposure.

Analysts astatine Cantor warned of near-term volatility arsenic organization selling pressures mount. But contempt cutting its outlook by 60%, the steadfast insists that investors’ biggest fearfulness of forced Bitcoin liquidations is “not warranted.”

Cantor chopped its 12-month people to $229 from $560, according to an expert enactment seen by the Financial Times. The simplification comes arsenic Strategy’s banal has dramatically underperformed the crypto market, falling 28% successful the past period and 32% year-to-date.

The banal trades adjacent $186, acold beneath Cantor’s erstwhile people and good nether its 2024 highs.

Cantor Fitzgerald is simply a large Wall Street concern slope and fiscal services steadfast founded successful 1945. It specializes successful organization brokerage, concern banking, fixed-income trading, and marketplace research. Cantor is besides a important capitalist successful Strategy (MSTR), ranking arsenic the company’s ninth-largest shareholder.

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Even aft slashing the people by much than half, Cantor kept its “buy” standing unchanged, telling clients that the marketplace has go overly fearful astir the company’s liquidity and index-removal risk.

“MSTR Will Be Forced to Sell Their Bitcoin. MSTR has capable currency to money dividends for 21 months, and its BTC position, worthy $60.7bn, compares to indebtedness notional of $8.2bn, nary of which matures until 2028. Also, MSTR tin inactive rise currency done equity facilities should it beryllium needed. Absent a 90% pullback from existent BTC levels, This Fear is Not Warranted,” expert shared with FT.