Price Target Update

In a recent analysis, Cantor Fitzgerald has increased its price target for Strategy MSTR from $186 to $208, while maintaining an “Overweight” rating. This adjustment reflects a more optimistic stance on the Bitcoin market, prompted by recent market trends that suggest growing strength in the asset class.

Despite this positive outlook, shares of Strategy experienced a decline of 3.32% during premarket trading.

Valuation Methodology

Cantor Fitzgerald employs a sum-of-the-parts valuation technique to assess Strategy’s overall worth. The firm applies a multiple of 2x enterprise value to the expected sales of $509 million in 2027. This approach has resulted in a revised enterprise value estimation for Strategy, increasing from $97 billion to $110 billion.

Additionally, with the new Bitcoin price assumption of $112,000 per BTC, Strategy’s holdings—amounting to 848,000 bitcoins—would be valued at approximately $95 billion.

Updated Financial Metrics

As part of its revised analysis, Cantor also updated the financial model for Strategy’s current Bitcoin assets and U.S. dollar reserves. The report highlights a significant gain of $20.91 billion attributed to digital assets, balanced against a deferred tax expense of $1.88 billion related to these gains.