Cantor Cuts Strategy Forecast Sharply: Still Sees Long-Term Upside
Cantor Fitzgerald, a US-based financial firm, cut its price target for Strategy, Michael Saylor’s Bitcoin-heavy company. However, the Financial Times claims that it dismissed concerns of forced liquidation and maintained a bullish outlook on the cryptocurrency’s long-term upside. According to reports, Cantor Fitzgerald reduced its 12-month price target for Strategy shares by 60%. The goal was lowered from $560 to $229, according to an analyst note obtained by the FT on Thursday.
However, Cantor‘s buy rating did not change in spite of the drop. Despite garnering a lot of attention, the bank claimed that worries about Strategy’s forced liquidation were unjustified. According to Cantor Fitzgerald’s analysts, the strategy has enough cash to pay dividends for 21 months.
Also, MSTR can still raise cash through equity facilities should it be needed. Absent a 90% pullback from current BTC levels, This Fear is Not Warranted.
Cantor Fitzgerald
Strategy Stock Slides as MSCI Delisting Fears Grow
At the time of writing, Strategy‘s shares were trading at about $181.92, based on data from Google Finance. The shares have dropped 39.36% since the start of the year and 28.66% in the past month. There are still short-term issues with Strategy’s stock. The possibility that the MSCI Index may eliminate corporations whose holdings of digital assets are over 50% of their total assets is one of the worst concerns. This could lead to the forced sale of MSTR if it is implemented. Cantor clarified that this is merely a short-term flow headwind and that the anxiety is only partially justified.
Cantor Projects Bitcoin Will Eventually Surpass Gold
Cantor is still optimistic about the Strategy and the momentum of Bitcoin’s price. The company described the recent decline as a healthy correction, pointing out that Bitcoin is expected to surpass gold in market capitalization.
We continue to believe that we are not far away from Bitcoin overtaking Gold’s market cap. As of today, Bitcoin’s market cap is just 6.1% of Gold’s market cap. To overtake Gold, Bitcoin would need to be priced at $1,577,860.
Cantor
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