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Canaccord has reduced MSTR’s price target significantly, by over 27%, while keeping a “buy” rating intact.
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This week, Strategy announced it had sold 32 Bitcoins, marking its first sale since 2022.
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Peter Schiff, who’s the CEO and chief global strategist at Euro Pacific Capital, has cautioned that cryptocurrencies might experience further downturns.
After a more than 7% drop on Wednesday, shares of Strategy, Inc. (MSTR) continued to decline in overnight trading as Bitcoin (BTC) prices slid to lows not seen in months, hovering below $62,000 and down over 8% in the past day.
Earlier this week, Strategy revealed that it had sold 32 Bitcoins for the first time since 2022, which resulted in a notable dip in cryptocurrency values. Before this, the company only sold Bitcoin once, back in December 2022.
Paul Howard, a senior director at liquidity provider Wincent, shared with CoinDesk that the recent sell-off in cryptocurrencies appears to be linked to the sale and ensuing ETF outflows, as well as speculation surrounding the Mt. Gox liquidation. He mentioned that $50,000 might be seen as a potential bottom for Bitcoin this year.
Wall Street turns pessimistic on MSTR
Joseph Buffy, an analyst at Canaccord, adjusted his price target for Strategy down from $224 to $163, a drop exceeding 27%. This adjustment followed the announcement regarding a Bitcoin sale, yet he maintained a buy rating on the stock.
As reported by The Fly, analysts noted that the market’s response was negative in light of the sale, despite its relatively minor and symbolic nature. Nonetheless, Canaccord pointed out that the main goal for the company is to secure funding for further Bitcoin acquisitions.
Moreover, Canaccord stressed that selling Bitcoin to support dividends might serve as a more sustainable strategy than offloading Strategy stock.
Earlier, Mizuho downgraded its price target on Strategy from $320 to $265 but kept an “outperform” rating, indicating continued optimism about the company despite the prevailing “crypto winter.”
Meanwhile, Schiff took to X to express concerns about the cryptocurrency market’s trajectory, stating Bitcoin’s chart looks unfavorable. He suggested Ethereum appears worse, and Solana’s chart is in even worse shape. He remarked that while selling has been orderly so far, it may not remain so in the near future.
