Cantor Fitzgerald Lowers MicroStrategy Price Target Amid Bitcoin Decline, Maintains Long-Term Bullish Outlook
Cantor Fitzgerald has lowered its 12-month price target for MicroStrategy (MSTR) to $229, a 59% drop from the previous target of $560, while maintaining an Overweight rating on the stock.
The valuation of MicroStrategy's Bitcoin treasury has decreased significantly, falling to $74 per share from $364.
Expectations for next-year capital markets fundraising have been reduced to $7.8 billion from $22.5 billion.
MicroStrategy's stock currently trades near $178, with the Bitcoin price below $90,000, down about 30% from its October high near $126,000.
The company holds a $1.44 billion cash reserve, which is sufficient to cover dividends for nearly two years.
Convertible debt totals $8.2 billion, with maturities not due until 2028.
Analysts have noted that fears of a crypto winter are somewhat warranted, but they consider fear-mongering about MicroStrategy to be overstated.
There is a risk of removal from the MSCI index, which JPMorgan estimates could lead to potential $2.8 billion outflows.
Historically, MicroStrategy has financed Bitcoin purchases by issuing common stock, and its market net asset value (mNAV) is cyclical.
