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Cantor Fitzgerald has slashed its Strategy terms target, but remains bullish connected the banal contempt fears implicit a imaginable exclusion by the MSCI Index and forced liquidation concerns, the FT said.
US-based fiscal steadfast Cantor Fitzgerald has slashed its terms people connected Michael Saylor’s Bitcoin-heavy institution Strategy but kept a bullish stance connected the cryptocurrency’s semipermanent upside, downplaying fears of forced liquidation, according to the Financial Times.
Cantor Fitzgerald reportedly lowered its 12-month terms people connected Strategy banal by 60%, adjusted to $229, down from $560, according to a Thursday expert note seen by the FT.
Despite the downgrade, Cantor’s “buy” standing reportedly remains unchanged, arsenic the slope said that fears surrounding Strategy’s forced liquidations were “not warranted,” contempt receiving important attention.
Strategy has “enough cash” to money dividend payments for 21 months, Cantor Fitzgerald’s analysts reportedly said. “Also, MSTR tin inactive rise currency done equity facilities should it beryllium needed. Absent a 90% pullback from existent BTC levels, This Fear is Not Warranted.”
Strategy stock prices compared to the Cantor terms target. Source: FT.comStill, Strategy’s stock terms has severely lagged Cantor’s anterior target. Cantor Fitzgerald is the ninth-largest shareholder successful the company.
Strategy’s banal traded astir $186 astatine the clip of writing, down 27% implicit the past period and 35% twelvemonth to date, according to Google Finance data.
MSTR/USD, year-to-date chart. Source: Google FinanceRelated: Over 8% of Bitcoin changed hands successful week, markets connected ‘knife’s edge,’ Analysts say
MSCI hazard and Bitcoin astatine $1.5 million
Strategy’s banal inactive faces short-term concerns, including the MSCI Index’s threat to region companies with integer plus holdings exceeding 50% of their full assets.
If enacted, this could effect successful the “forced selling of MSTR,” but Cantor said this is simply a “somewhat warranted” fearfulness that lone presents a “near-term travel headwind.”
Largest assets by marketplace capitalization. Source: CompaniesMarketCap.comStill, Cantor remains bullish connected Strategy and Bitcoin’s (BTC) terms momentum, calling the existent pullback a “healthy” correction arsenic BTC is connected way to eclipse the marketplace capitalization of gold.
“We proceed to judge that we are not acold distant from Bitcoin overtaking Gold’s marketplace cap,” Cantor reportedly wrote. “As of today, Bitcoin’s marketplace headdress is conscionable 6.1% of Gold’s marketplace cap. To overtake Gold, Bitcoin would request to beryllium priced astatine $1,577,860.”Related: Bitcoin’s 24/7 liquidity: Double-edged sword during planetary marketplace turmoil
Other fashionable analysts person besides predicted that Bitcoin volition yet eclipse gold's marketplace capitalization. For instance, Joe Burnett predicted that this improvement would spot Bitcoin surpass $1.8 cardinal by 2035.
Still, Bitcoin’s terms would request to turn by astir 16-fold to surpass the worth of the world’s largest precious metal.
Bitcoin, gold, year-to-date chart. Source: Cointelegraph/TradingViewSince the opening of 2025, gold’s terms has risen 58%, outperforming Bitcoin’s 1.5% YTD decline, according to TradingView data.
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