TD Cowen Slashes Strategy Price Target, Citing Ongoing Bitcoin Weakness
TD Cowen Slashes Strategy Price Target, Citing Ongoing Bitcoin Weakness
What's more, Strategy's framework marked a shift toward "two-way capital allocation," the analysts wrote, noting that the company's ability to repurchase $1 billion in common shares and $1 billion in preferred shares may present arbitrage opportunities.
Everyday Savers Bet Big on Bitcoin Giant Strategy's STRC—Now It's Falling
The analysts highlighted Strategy's new monetization program for Bitcoin, under which the firm can sell $1.25 billion worth of Bitcoin to top off its cash reserves. The initiative formalized the digital asset as a "flexible source of capital" alongside other levers, they added.
Strategy's stock price tumbled early this month after the firm sold 32 Bitcoin for $2.5 million. The move was telegraphed in advance as a way for the company to show its commitment to preferred stockholders, but it stoked uncertainty about future sales.
On Myriad, a prediction market owned by Decrypt parent company Dastan, traders penciled in a 14% chance that Strategy would hold more than 1 million Bitcoin before year's end. That marked a decrease from 17.5% a week ago.
Last July, TD Cowen raised its Strategy price target to $680, around the time shares were trading above $450. MSTR shares are now down more than 79% in the last year.
This article has been published in yahoo.com via Yahoo News.
TD Cowen Slashes Strategy Price Target, Citing Ongoing Bitcoin Weakness
Strategy's stock price started sliding again on Tuesday, one day after breaking a nine-day losing streak.
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