Cantor Fitzgerald Slashes Strategy Price Target 60% But Says Forced-Sale Fears Are Overblown
Cantor Fitzgerald has slashed its price target for corporate Bitcoin buyer Strategy by 60%, but says fears that it will be forced to sell some of its Bitcoin hoard are overblown.
According to an analyst note to clients that was seen by the Financial Times, the firm lowered its 12-month price target for Strategy stock MSTR from $560 to $229.
That’s after MSTR plummeted over 49% in the past six months to trade at $186.01 yesterday, according to Google Finance, almost 19% below Cantor’s revised target.
Strategy share price (Source: Google Finance)
Cantor Maintains Buy Rating For Strategy As MSCI Decision Nears
Despite downgrading its price target for MSTR, Cantor maintained its “buy” rating for the stock.
That’s amid growing concerns that MSTR will be removed from MSCI indexes next month, a move that JPMorgan has warned could trigger as much as $12 billion of outflows for the stock.
Several other crypto treasury companies have been shortlisted for possible removal, including Japan-based Metaplanet. A decision will be made on Jan. 15.
Concerned about those strong outflows, investors have worried that Strategy will be forced to sell some of its Bitcoin holdings to meet dividend payment obligations on its various preferred stock offerings.
Cantor said the concerns that Strategy will be forced to liquidate some of its holdings are “not warranted.”
The investment firm said Strategy’s recently-established $1.4 billion US dollar reserve shows the company has “enough cash” to fund dividend payments for 21 months. Strategy can also still raise cash through equity facilities if needed, Cantor added.
Other financial firms have expressed similar sentiments. JPMorgan has said that Strategy’s potential removal from MSCI indexes has already been priced in by the market, while Bitwise CIO Matt Hougan downplayed the effect the removal could have on MSTR’s price.
JPMorgan added that if MSCI chooses to keep Strategy in its indexes, it could see MSTR and Bitcoin’s price rally to the levels seen prior to the Oct. 10 flash crash.
Cantor Says Recent Pullback “Healthy”
Cantor said the pullback in the MSTR price is a “healthy” correction and predicted that BTC could eventually surpass gold’s market cap.
“We continue to believe that we are not far away from Bitcoin overtaking Gold’s market cap,” the analysts wrote.
“As of today, Bitcoin’s market cap is just 6.1% of Gold’s. To overtake Gold, Bitcoin would need to be priced at $1,577,860,” they added.
Strategy Continues To Buy Bitcoin, Albeit At A Slower Pace
Amid the fears it may be forced to sell Bitcoin, Strategy continues adding to its Bitcoin reserve.
At the start of the week, the company announced that it bought another 130 BTC for approximately $11.7 million.
According to the company’s executive chairman Michael Saylor, the BTC was purchased at an average price of $89,960 per Bitcoin.
But its pace of buying has slowed. CryptoQuant said in a Dec. 3 report that Strategy’s monthly BTC purchases fell from 134,000 at the 2024 peak to just 9,100 in November, with only 130 BTC added so far this month.
Strategy’s largest Bitcoin buy in 2025 was on March 31, when it acquired 22,048 BTC for around $1.918 billion, according to its website.
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