$MSTR Climbs Back Above $100 Amid Broader Crypto Rally Shares of @Strategy ($MSTR) crossed back above $100 intraday on July 2, gaining more than 7% on the day and extending a rally that began
Shares of @Strategy ($MSTR) crossed back above $100 intraday on July 2, gaining more than 7% on the day and extending a rally that began after the company unveiled its Digital Credit Capital Framework on June 29. The move came alongside a broader crypto market uptick, with $BTC trading near $61,500.
The framework represents a meaningful shift in how Strategy manages its capital structure. According to the company's official announcement, the plan includes a $1 billion preferred securities repurchase program, a separate $1 billion Class A common stock buyback, a formal USD Reserve Policy, a revised dividend policy for $STRC preferred stock, and a Bitcoin Monetization Program allowing the sale of up to $1.25 billion in $BTC to fund reserves and service obligations. The company's USD reserve stood at approximately $2.55 billion as of June 28, providing roughly 25.9 months of liquidity coverage when combined with BTC monetization capacity.
The stock's push higher came despite a wave of price target reductions from major sell-side desks. Citi delivered the steepest cut, lowering its target to $136 from $260, driven by a revised Bitcoin price forecast of $81,800 while keeping a Buy rating. BTIG trimmed its target to $250 from $350, maintaining Buy, and characterizing $MSTR as leveraged Bitcoin exposure that could outperform on the way back up as prices recover. Canaccord analyst Joseph Vafi cut his target to $130 from $163, also keeping a Buy, citing tougher conditions from Bitcoin's recent declines.
All three firms kept bullish ratings intact, with analysts citing Bitcoin's slide rather than any fundamental deterioration in the company as the reason for the lower targets. The gap between surviving targets, ranging from $130 to $250, reflects how differently desks model the same balance sheet even as they agree the selloff is cyclical rather than structural.
One telling sign of where the conviction sits: $STRC, Strategy's preferred share series, rose just 0.47% on the day. The rally is concentrated in the common stock, suggesting it is momentum and framework optimism driving $MSTR, not a broad re-rating across the capital structure.
Sources:Strategy Inc. Official Press Release: Digital Credit Capital FrameworkCrypto Briefing: Citi Lowers Strategy Price Target to $136Yahoo Finance: MSTR Draws Multiple Price Target Cuts
