Mizuho has revised its price target for Strategy (formerly MicroStrategy), reducing it by nearly 20% from $320 to $265 while maintaining an Outperform rating for the stock, according to a report by Investing.com. The brokerage highlights that the firm, known for its Bitcoin treasury strategy, holds around $2 billion in reserves, which it states is sufficient to support approximately two years of dividend payments.
In addition to the price target adjustment, Mizuho noted Strategy’s “innovative products,” including Stretch (STRC), which it described as a flexible financial instrument. Despite the adjusted target, the firm remains optimistic about Strategy’s long-term prospects, anticipating a return to profitability by 2026, with consensus estimates projecting earnings per share (EPS) exceeding $54. The firm also revised its Bitcoin price forecast for the end of 2027, lowering it from $128,000 to $94,000 following the company’s Q1 2026 earnings results.
On a related note, Strategy co-founder Michael Saylor recently reversed his previous commitment to not sell Bitcoin. The company disclosed the sale of 32 BTC for approximately $2.5 million during the period from May 26-31. While this decision may seem unexpected, Saylor had indicated potential sales during the Q1 earnings call. This is not the first instance of Bitcoin sales for Strategy; the company previously sold 704 BTC in December 2022 under the guise of “tax-loss harvesting,” while also acquiring 2,395 BTC.
Despite the recent transaction, Strategy continues to lead the industry as the largest Bitcoin treasury firm, maintaining a staggering total of 843,706 BTC on its balance sheet as of May 31. Following these developments, MSTR shares experienced a nearly 6% drop, closing at $149.78 on June 1. Although the stock has only decreased 1.5% year-to-date, it has suffered a significant 60% decline over the past year.
