MSTR (the largest institutional Bitcoin investor) has maintained its investment in Bitcoin in spite of the disastrous drop in value this year. BTC’s price has dropped by nearly 30% in the past three months, and this is what caused the MSTR share price to plummet. BTC was an expensive investment, but MSTR investors have also seen the value of their MSTR stock plummet, causing many to panic sell.
Some Wall Street experts, however, believe that Michael Saylor’s Strategy’s recent BTC-buying spree will be rewarded, and MSTR will rise again. Recent reports highlight a stable outlook from S&P Global Ratings and ongoing institutional interest in cryptocurrency. A future regulatory clarification could also enhance the institutional adoption of cryptocurrency, creating a positive environment.
Strategy has also spent another $109 million in the past week to buy more Bitcoin. The company purchased 1,229 Bitcoin between December 22-28 during a quiet week of trading due to holidays. A SEC filing states that the company purchased bitcoins at an average cost of approximately $88,600 each. The funds were raised through an SEC common stock offer. Strategy now has 672,497 coins, worth $50.4billion, in its total Bitcoin holdings.
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Cantor Fitzgerald slashed its Strategy share price target to $229 this month from $560. That’s a massive 59% reduction. The firm maintained an Overweight ranking and advised investors to ignore any negative news. “fear-mongering.” “Ultimately, we see this has a healthy pullback in crypto and Bitcoin,” Brett Knoblauch, Gareth Garcetta and other analysts wrote about this. “Our long-term thesis for Bitcoin becoming a global reserve asset remains unchanged.”
MSTR trades at $156, near the bottom end of its range for 52 weeks and is below its moving average simple over 200 days.
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Source: watcher.guru
