Strategy (MSTR) is no normal stock, and a drastic price target cut from Wall Street confirms it. Despite a massive 59% reduction in its 12-month target, from $560 down to $229, Cantor Fitzgerald not only maintained its Overweight rating but counseled investors to ignore the “fear-mongering.”
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The stock, which has fallen 36% in 2025 due to plunging cryptocurrency prices, dropped another 1.5% in pre-market trading Friday to $183.20. This volatility is the direct result of the company’s pioneering digital-asset treasury strategy, which saw Strategy all but shelve its software business to buy up $60 billion worth of Bitcoin.
The Bitcoin Hangover Refuses to Turn into Crypto Winter
The massive price target cut is simply a reflection of the narrowed premium the stock trades at compared to its Bitcoin holdings. Bitcoin is currently trading around $91,000, down 28% from its all-time high in early October. However, analysts Brett Knoblauch and Gareth Garcetta argue that the current dramatic pullback in crypto prices is a “healthy pullback” and not the start of a prolonged “crypto winter.”
Cantor Fitzgerald remains bullish on the long-term crypto thesis, stating that its view of Bitcoin becoming a global reserve asset remains unchanged. The firm argued that sustained downturns are usually triggered by a “black swan-type event,” such as the Federal Reserve raising interest rates, which is not currently visible in the market.
Liquidation Fears Are Unwarranted
Concerns that Strategy will be forced to liquidate its Bitcoin holdings to meet debt and dividend obligations are deemed unwarranted by the analysts. The company’s $8.2 billion in notional debt pales in comparison to its Bitcoin holdings, and forced liquidation would only be necessary if Bitcoin suffered an additional 90% pullback from its current level.
Interestingly, Strategy is currently not buying the crypto dip, despite its reputation for an insatiable appetite for Bitcoin. This pause is deliberate: the company’s model only allows it to buy Bitcoin when it boosts the stock’s premium relative to its holdings, which is currently not the case. The 59% price cut, therefore, is merely a “prudent” adjustment to reflect the falling premiums experienced across the entire digital-asset treasury market.
Is Strategy a Good Stock to Buy?
Analyst sentiment toward Strategy (MSTR) is rated as a Strong Buy, based on the consensus of 14 Wall Street analysts tracked in the last three months. Of these ratings, 12 analysts call it a Buy, two recommend a Hold, and zero recommend a Sell.
The average 12-month MSTR price target sits at $521.17. This target implies a significant upside potential of 180.2% from the last price.
