The US-based financial firm Cantor Fitzgerald has significantly reduced its price target for Michael Saylor’s Bitcoin-centric company, Strategy, but maintains an optimistic view on the long-term potential of the cryptocurrency, minimizing concerns about forced liquidation, as reported by the Financial Times.
According to a Thursday analyst note viewed by the FT, Cantor Fitzgerald lowered its 12-month price target for Strategy stock by 60%, setting it at $229, down from $560.
Despite the downgrade, Cantor’s “buy” rating reportedly remains intact, as the bank stated that fears related to Strategy’s forced liquidations are “not warranted,” despite being widely discussed.
Cantor Fitzgerald’s analysts noted that Strategy has “enough cash” to sustain dividend payments for 21 months. “Moreover, MSTR can still raise cash through equity facilities if necessary. Unless there is a 90% drop from current BTC levels, this fear is not justified.”
Nonetheless, Strategy’s share price has significantly underperformed relative to Cantor’s previous target. Cantor Fitzgerald is the ninth-largest shareholder in the company.
At the time of writing, Strategy’s stock was trading around $186, reflecting a 27% decline over the past month and a 35% drop year to date, according to Google Finance data.
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Strategy’s stock is still contending with short-term issues, including the MSCI Index’s potential to exclude companies with digital asset holdings over 50% of their total assets.
If this measure is implemented, it could lead to “forced selling of MSTR,” although Cantor described this as a “somewhat warranted” concern that primarily poses a “near-term flow headwind.”
Nevertheless, Cantor remains positive about Strategy and Bitcoin’s (BTC) price trajectory, referring to the current dip as a “healthy” correction, as BTC is poised to surpass the market capitalization of gold.
“We continue to believe that we are not far from Bitcoin overtaking Gold’s market cap,” Cantor reportedly indicated. “Currently, Bitcoin’s market cap stands at just 6.1% of Gold’s. For Bitcoin to surpass Gold, its price would need to reach $1,577,860.”
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Other notable analysts have projected that Bitcoin will eventually exceed gold’s market capitalization. For example, Joe Burnett has forecast that this event could see Bitcoin rise above $1.8 million by 2035.
However, Bitcoin’s value would need to increase nearly 16 times to surpass the worth of the world’s most significant precious metal.
Since the start of 2025, gold’s price has surged 58%, outperforming Bitcoin’s 1.5% YTD decrease, according to TradingView data.
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