Strategy (MSTR), the largest institutional investor in Bitcoin, has continued to invest in the leading cryptocurrency despite its disastrous dip this year. In the last three months alone, BTC has fallen nearly 30%, causing the MSTR stock price to also plummet from record highs. The hefty BTC investment was always a risk, but investors in MSTR shares have seen their shares to slump in value, and for many to start panic-selling the stock.
On the other hand, some experts on Wall Street insist that the recent BTC buying spree by Michael Saylor’s Strategy will pay off, sending MSTR higher again. Recent reports highlight a stable outlook from S&P Global Ratings and ongoing institutional interest in cryptocurrency. Additionally, upcoming regulatory clarity could further enhance institutional adoption, providing a favorable environment.
Furthermore, Strategy again upped its BTC holdings this past week, spending another $109 million to acquire more Bitcoin. The company bought 1,229 bitcoin between December 22 and 28 during an otherwise quiet trading week due to the holidays. The purchases were made at an average price of roughly $88,600 per coin and were funded through a common stock offering, according to an SEC filing. Now, Strategy’s total bitcoin holdings sit at 672,497 tokens, valued at around $50.4 billion.
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Earlier this month, Cantor Fitzgerald dropped its target for Strategy shares to $229 from $560, a staggering 59% cut. Nonetheless, the firm reiterated an Overweight rating and counseled investors to ignore the “fear-mongering.” “Ultimately, we see this has a healthy pullback in crypto and Bitcoin,” wrote analysts Brett Knoblauch and Gareth Garcetta. “Our long-term thesis for Bitcoin becoming a global reserve asset remains unchanged.”
At $156, MSTR is trading near the bottom of its 52-week range and below its 200-day simple moving average.