Mizuho lowered the price target while maintaining an Outperform rating on the Strategy (Nasdaq: MSTR), née MicroStrategy, stock, Investing.com reported on June 1. The brokerage firm said the
Mizuho lowered the price target while maintaining an Outperform rating on the Strategy (Nasdaq: MSTR), née MicroStrategy, stock, Investing.com reported on June 1.
The brokerage firm said the Bitcoin (BTC) treasury company holds reserves worth around $2 billion to cover roughly two years of dividends.
The firm also mentioned Strategy's "innovative products" like Stretch (STRC) as a flexible financial instrument.
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Though the firm has lowered the price target on the MSTR stock by nearly 20% from $320 to $265, it still expects Strategy to return to profitability in 2026, and consensus estimates point to earnings per share (EPS) of more than $54.
The firm also lowered its end-of-2027 Bitcoin price forecast from $128,000 to $94,000 following Strategy's Q1 2026 results.
The same day, Strategy co-founder Michael Saylor went back on his vow to never sell Bitcoin as the company announced the sale of 32 BTC for approximately $2.5 million during May 26-31.
The announcement was hardly surprising, given that Saylor had already hinted at selling Bitcoin during the Q1 2026 earnings call.
However, this isn't the first time the company has sold Bitcoin. In December 2022, it sold 704 BTC and bought 2,395 BTC primarily as a "tax-loss harvesting" exercise.
Despite the latest sale of BTC, Strategy is still the world's largest Bitcoin treasury firm as it still holds 843,706 BTC on its balance sheet as of May 31.
The MSTR stock fell nearly 6% to close at $149.78 on June 1 following the latest announcement. Though the stock is down only 1.5% this year, it has fallen 60% in a year.
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