US-based financial firm Cantor Fitzgerald has slashed its price target on Michael Saylor’s Bitcoin-heavy company Strategy but kept a bullish stance on the cryptocurrency’s long-term upside, downplaying fears of forced liquidation, according to the Financial Times.
Cantor Fitzgerald reportedly lowered its 12-month price target on Strategy stock by 60%, adjusted to $229, down from $560, according to a Thursday analyst note seen by the FT.
Despite the downgrade, Cantor’s “buy” rating reportedly remains unchanged, as the bank said that fears surrounding Strategy’s forced liquidations were “not warranted,” despite receiving significant attention.
Strategy has “enough cash” to fund dividend payments for 21 months, Cantor Fitzgerald’s analysts reportedly said. “Also, MSTR can still raise cash through equity facilities should it be needed. Absent a 90% pullback from current BTC levels, This Fear is Not Warranted.”
Still, Strategy’s share price has badly lagged Cantor’s prior target. Cantor Fitzgerald is the ninth-largest shareholder in the company.
Strategy’s stock traded around $186 at the time of writing, down 27% over the past month and 35% year to date, according to Google Finance data.
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MSCI risk and Bitcoin at $1.5 million
Strategy’s stock still faces short-term concerns, including the MSCI Index’s threat to remove companies with digital asset holdings exceeding 50% of their total assets.
If enacted, this could result in the “forced selling of MSTR,” but Cantor said this is a “somewhat warranted” fear that only presents a “near-term flow headwind.”
Still, Cantor remains bullish on Strategy and Bitcoin’s (BTC) price momentum, calling the current pullback a “healthy” correction as BTC is on track to eclipse the market capitalization of gold.
“We continue to believe that we are not far away from Bitcoin overtaking Gold’s market cap,” Cantor reportedly wrote. “As of today, Bitcoin’s market cap is just 6.1% of Gold’s market cap. To overtake Gold, Bitcoin would need to be priced at $1,577,860.”
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Other popular analysts have also predicted that Bitcoin will eventually eclipse gold’s market capitalization. For instance, Joe Burnett predicted that this development would see Bitcoin surpass $1.8 million by 2035.
Still, Bitcoin’s price would need to grow by nearly 16-fold to surpass the value of the world’s largest precious metal.
Since the beginning of 2025, gold’s price has risen 58%, outperforming Bitcoin’s 1.5% YTD decline, according to TradingView data.
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