Canaccord Genuity Warns on Strategy: Saylor's Bitcoin Bet Losing Wall Street Support
Canaccord Genuity slashed its MSTR price target from $163 to $130, joining TD Cowen in raising alarms over Strategy's leveraged Bitcoin model as the stock heads for its eleventh losing month in twelve.
Wall Street's confidence in Michael Saylor's flagship company, Strategy, is visibly eroding. Analysts and investment firms are growing increasingly skeptical of its debt-driven Bitcoin accumulation model, with fresh downgrades and cautionary language signaling a broader shift in sentiment.
On Tuesday, wealth management firm Canaccord Genuity issued a new warning, cutting its price target on Strategy's stock — ticker MSTR — from $163 down to $130. The firm's analysts described the company's Bitcoin acquisition approach using a striking analogy: "Like an automobile, which drives better in forward gear versus reverse, so does MSTR's BTC acquisition model." The comment was picked up by Matthew Sigel, head of digital asset research at VanEck, who noted the observation holds true for most leveraged positions.
Canaccord is not alone in its growing pessimism. Investment bank TD Cowen also slashed its price target on MSTR dramatically — from $400 all the way down to $260. Despite maintaining a buy rating, TD Cowen cited a weakening Bitcoin outlook as the main reason behind the steep reduction. The bank did acknowledge what it called a "constructive" capital framework recently introduced by Strategy, though that did little to soften the blow.
Adding to the turbulence, Strategy recently executed a major policy reversal by authorizing the potential sale of significant portions of its Bitcoin holdings. The company has indicated plans to liquidate up to $3.25 billion worth of Bitcoin to support its USD reserve, cover preferred dividends, and fund stock buybacks — a stark departure from its previously unwavering accumulation stance.
Financial commentator Peter Schiff, a longtime critic of Strategy's model, has issued fresh warnings about the company's dividend obligations. "The current yield on $STRC is 15%. That means to get the price back up to $100, Strategy must raise the dividend rate from 12% to 15%," Schiff explained. He further cautioned that higher dividend rates would accelerate cash burn, forcing the company to sell more Bitcoin earlier than anticipated just to maintain its minimum USD reserve balance — a dynamic he previously described as a potential "death spiral."
The numbers paint a grim picture. According to recent market data, MSTR is on track to post its eleventh losing month out of the last twelve. The stock shed approximately 41% of its value in June alone — a staggering decline. Even more telling, MSTR has significantly underperformed Bitcoin itself since the launch of the STRC instrument, raising serious questions about whether the stock still serves its intended purpose as a leveraged proxy for Bitcoin exposure.
As market analysts point out, the stock's appeal as a high-octane Bitcoin play is fading fast. With price targets tumbling, debt concerns mounting, and a controversial shift toward Bitcoin liquidation underway, Strategy faces an increasingly skeptical audience on Wall Street. The coming months will be critical in determining whether Saylor's bold experiment in corporate Bitcoin treasury management can survive the pressure.
