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Canaccord lowered the price target on MSTR by more than 27% but kept a ‘Buy’ rating.
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Earlier this week, Strategy announced it had sold 32 bitcoins in its first-ever sale since 2022.
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Peter Schiff, CEO and Chief Global Strategist of Euro Pacific Capital, has warned that cryptocurrencies are poised to slip further.
Shares of Strategy Inc. (MSTR) extended losses in overnight trading after tumbling over 7% on Wednesday as the price of bitcoin (BTC) slid to its lowest level in months, falling below $62,000 and declining more than 8% in the past 24 hours.
Earlier this week, Strategy announced it had sold 32 bitcoins in its first-ever sale since 2022, triggering a wider sell-off in the cryptocurrency. Strategy has sold bitcoin only once before in its history, in Dec. 2022.
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“A broad sell-off in crypto, which started with Strategy’s transfer triggering ETF outflows and is now fueled by speculative news about Mt. Gox liquidations, signals a potential continued sell-off. BTC at $50k is a level some are starting to talk about as a bottom this year,” Paul Howard, senior director at liquidity provider Wincent, reportedly told CoinDesk in an email.
Wall Street Turns Pessimistic On MSTR
On Wednesday, Canaccord analyst Joseph Vafi lowered the price target on Strategy by more than 27%, to $163 from $224, and kept a ‘Buy’ rating on the shares following its recent disclosure of a Bitcoin sale.
The analyst said the market reacted negatively when Strategy disclosed its sale, even though it was small and symbolic, according to TheFly. Canaccord, however, noted that the company’s main capital markets vehicle is to fund increased BTC purchases.
Canaccord also added that the company was educating the market that selling Bitcoin to fund dividends sometimes makes more long-term sense than selling Strategy shares.
Earlier this week, Mizuho also lowered the price target on Strategy to $265 from $320 and maintained an ‘Outperform’ rating on the shares, noting that it remains constructive on the company despite the “crypto winter” persisting.
Meanwhile, Peter Schiff, CEO and Chief Global Strategist of Euro Pacific Capital, warned in a post on X that cryptocurrencies seemed poised to slip further. “The Bitcoin chart looks bad, but check out the rest of crypto. The Ethereum chart looks worse, and the Solana chart looks worse than that. Everything looks like it’s about to implode,” he said. “So far, the selling has been very orderly with no signs of panic. That will likely change soon,” Schiff added.
