MicroStrategy Considers Bitcoin Sales After Third Quarterly Loss; Price Target Rises to $395
MicroStrategy posted its third consecutive quarterly loss on bitcoin after a 10% decline, prompting CEO Michael Saylor to reconsider his pledge to never sell. TD Cowen raised MicroStrategy's price target to $395, citing a shift from STRC convertible notes to unsecured debt that lowers dilution risk and boosts liquidity.
1. Bitcoin Losses Prompt Strategy Reassessment
MicroStrategy announced its third straight quarter of net impairments on its bitcoin holdings, driven by a 10% drop in BTC prices that has accumulated losses exceeding $1.5 billion since inception. CEO Michael Saylor signaled he may now sell part of the firm’s roughly 214,000-coin position after previously pledging never to do so.
2. Analyst Raises Price Target on Funding Shift
TD Cowen boosted its MicroStrategy price target to $395, highlighting the company’s move from issuing STRC convertible notes to unsecured debt. This funding shift is expected to reduce potential share overhang, improve liquidity and strengthen the balance sheet.