Cantor Fitzgerald Cuts Strategy Price Target by 60%, Dismisses Liquidation Concerns

Cantor Fitzgerald Cuts Strategy Price Target by 60%, Dismisses Liquidation Concerns

Cantor Fitzgerald, a U.S.-based financial institution, has reduced its price target for Strategy, a Bitcoin-focused company led by Michael Saylor, by 60%. Despite this adjustment, they maintain a positive outlook on Bitcoin's long-term prospects and believe that the fears of forced liquidations are exaggerated.

Key Takeaways

Cantor Fitzgerald lowered its 12-month price target for Strategy from $560 to $229, a 60% decrease.
The firm continues to hold a “buy” rating on Strategy and believes fears of forced liquidations are unfounded.
Analysts determined that Strategy has sufficient cash to cover dividend payments for the next 21 months.
Despite the decrease in target price, Strategy's stock performance has been poor, down 27% over the past month.

Strategy share prices compared to the Cantor price target. Source: FT.com

Current Stock Performance and Outlook

Currently, Strategy's stock is trading at approximately $186, reflecting a decline of 27% over the previous month and 35% year-to-date, based on data from Google Finance. Cantor Fitzgerald holds the position of the ninth-largest shareholder in Strategy.

MSTR/USD, year-to-date chart. Source: Google Finance

Concerns Regarding MSCI Index and Bitcoin Outlook

In the short term, Strategy’s stock could be influenced by the MSCI Index, which may remove companies that have more than 50% of their total assets in digital currencies. This could result in forced sales of Strategy's assets, a situation Cantor views as a “somewhat warranted” concern that could hinder flow in the near term.

Largest assets by market capitalization. Source: CompaniesMarketCap.com

Despite these challenges, Cantor Fitzgerald remains optimistic about Bitcoin's price trajectory. They describe the recent market pullback as a “healthy” correction, as Bitcoin aims to surpass gold regarding market capitalization.

Future Predictions for Bitcoin

Many analysts predict that Bitcoin could eventually exceed gold's market cap. For example, Joe Burnett forecasts Bitcoin might reach $1.8 million by 2035. However, Bitcoin's price must increase nearly 16 times its current value to surpass the worth of the world's largest precious metal.

Bitcoin, gold, year-to-date chart. Source: Cointelegraph/TradingView

Since the start of 2025, the price of gold has risen by 58%, in contrast to Bitcoin's 1.5% decline year-to-date, according to TradingView.

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