MSTR Stock Prediction: Wall Street Reiterates $212 Target as STRC Soars 12% on Restructuring

Strategy (NASDAQ: MSTR) stock gained 12% on June 29, closing at $92, following the company’s announcement of a restructuring plan that involves selling Bitcoin to increase its USD reserves. This development led Cantor Fitzgerald to reiterate a $212 price target for MSTR.

The restructuring also boosted sentiment around the STRC preferred stock, which rose 12% to close at $82. Strategy is increasing the dividend on STRC from 11.5% to 12%, driving demand. STRC had hit an all-time low on June 26 amid concerns over Strategy’s ability to pay dividends after a $13 billion loss in its Bitcoin holdings. On June 29, buy volumes reached 7.47 million shares, the highest since May 14.

Cantor Fitzgerald maintained a buy rating on MSTR, stating that the shift from being a net Bitcoin buyer to selling when necessary alleviates liquidity concerns. The firm noted that Strategy could raise $1.25 billion for its USD reserves by selling Bitcoin.

Technically, MSTR stock bounced from a crucial support level at $82, avoiding a potential drop to $65. If MSTR closes above $82 for three consecutive days, it could move toward the $100 psychological barrier and later the 23.6% Fibonacci level of $109. The Relative Strength Index (RSI) of 32 indicates bearish momentum, but the RSI has bounced from an oversold level of 23, suggesting selling pressure is waning.

Bitcoin critic Peter Schiff commented that Strategy’s plan to sell $1.25 billion in Bitcoin could trigger a price crash. He argued that if a small sale of 32 Bitcoin in May caused a drop to $59,000, selling 54,000 Bitcoin would have a more profound effect. Schiff noted that Strategy needs the funds to pay dividends, raise reserves, repay debt, and buy back stock.

Source: https://coingape.com/markets/mstr-stock-prediction-wall-street-reiterates-212-target-as-strc-soars/