Mizuho has lowered its price target for Strategy Inc. (MSTR) to $213 from $265, following a revision in its long-term Bitcoin price assumptions. Despite the downward adjustment, the brokerage maintained its Outperform rating, signaling that it still expects the stock to trade above the $200 mark.
The new target comes after Strategy sold 3,588 Bitcoin for roughly $216 million, a move that left the company with 843,775 BTC and approximately $2.55 billion in cash reserves. Mizuho now models Bitcoin at $71,500 by the end of 2027, down from its previous forecast. The sale was intended to fund dividend payments tied to digital credit securities, and initial market reaction briefly pushed Bitcoin toward $61,000 before it rebounded above $63,000.
Grayscale Research released a July 6 report arguing that investors may have misread the transaction. The firm’s head of research, Zach Pandl, said the sale strengthened Strategy’s financial position rather than signaling distress. Several market commentators also suggested that the move could improve the company’s odds of being included in the S&P 500. Crypto researcher Ignas noted that demonstrating the ability to generate liquidity during a Bitcoin downturn addresses concerns previously raised by S&P Global, and passive fund buying could create additional demand for MSTR shares. Commentator Zayn added that Strategy has built a sizeable dollar reserve, repurchased convertible debt, and used Bitcoin sales to meet obligations—steps that may counter criticism of its financing model.
MSTR shares recovered above the psychological $100 level, trading around $101 in premarket action, though the stock remains down more than 34% year-to-date amid a broader crypto bear market.
