Mizuho reduced its price target for Strategy Inc. after revising its long-term Bitcoin expectations, yet the firm continues to expect meaningful upside for the company’s shares. The brokerage lowered its target to $213 from $265 while keeping its Outperform rating unchanged.
The adjustment followed Strategy’s recent decision to sell part of its Bitcoin holdings to finance dividend payments. Despite the lower valuation, analysts still believe the stock can regain momentum as the company strengthens its financial position and prepares for future opportunities.
Bitcoin Sale Reshapes Market Outlook
Strategy sold 3,588 Bitcoin for approximately $216 million to cover dividends tied to its digital credit securities. The company still controls 843,775 Bitcoin alongside $2.55 billion in U.S. dollar reserves.
Meanwhile, Mizuho also reduced its year-end 2027 Bitcoin forecast to $71,500, prompting the lower stock target. However, analysts maintained confidence in Strategy’s broader business model despite the revised assumptions.
S&P 500 Hopes Remain a Key Catalyst
Crypto researcher Ignas argued the Bitcoin sale could improve Strategy’s chances of joining the S&P 500. Consequently, index funds could purchase the stock if the company secures inclusion.
Additionally, Ignas suggested Strategy may eventually rebuild its Bitcoin position. Meanwhile, Strategy shares traded at $99.22, falling 1.54% during the latest session as investors weighed the recent developments.
Related: Why Institutional Capital Is Becoming More Selective in Crypto
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