Canaccord Genuity Warns Strategy Is Heading Backward: Price Target Slashed to $130

Wall Street's confidence in Strategy's debt-fueled Bitcoin accumulation model is eroding at a striking pace, with major financial institutions now openly questioning whether the company's aggressive leveraged approach can sustain itself in a volatile crypto environment.

Wealth management firm Canaccord Genuity issued a sharp downgrade on Tuesday, cutting its price target for Strategy's stock (MSTR) from $163 to $130. The firm's analysts did not mince words when describing the company's current trajectory. "Like an automobile, which drives better in forward gear versus reverse, so does MSTR's BTC acquisition model," the analysts wrote — a metaphor that has quickly resonated across financial circles. Matthew Sigel, head of digital asset research at VanEck, echoed this sentiment, noting that the observation holds true for most leveraged investment strategies.

Canaccord is not alone in its skepticism. Investment bank TD Cowen recently made a dramatic revision of its own, slashing its MSTR price target from $400 all the way down to $260. However, TD Cowen stopped short of issuing a sell signal, maintaining a buy rating while pointing to what it described as a more "constructive" capital framework recently introduced by the company. The bank attributed the severe target reduction primarily to a deteriorating outlook for Bitcoin itself.

What has further rattled investors is a significant policy shift within Strategy. The company recently reversed course in a major way, authorizing the potential sale of substantial portions of its Bitcoin holdings. Specifically, Strategy announced plans to sell up to $3.25 billion worth of Bitcoin to build a USD reserve, cover preferred dividend obligations, and fund stock buyback programs — a move that signals growing financial pressure beneath the surface.

Financial commentator and longtime Bitcoin critic Peter Schiff has been particularly vocal about the risks embedded in this approach. Schiff highlighted the compounding danger of Strategy's dividend obligations, explaining that the current yield on STRC stands at 15%. According to Schiff, restoring the stock price to $100 would require raising the dividend rate from 12% to 15%, which in turn would accelerate cash burn and force the company to liquidate even more Bitcoin sooner than anticipated. He has described the monetization program as a potential catalyst for a market "death spiral."

The numbers on MSTR's stock performance paint a grim picture. The stock is currently on track to record losses in eleven out of the past twelve months — a remarkable streak for a company once celebrated as the ultimate Bitcoin proxy play. June alone saw the stock collapse by approximately 41%. Perhaps most damning is the fact that MSTR has significantly underperformed Bitcoin itself since the launch of STRC, undermining the core value proposition that originally attracted leveraged Bitcoin bulls to the stock.

Market analysts are increasingly warning that Strategy's days as a reliable leveraged Bitcoin vehicle may be numbered. As the company pivots toward asset liquidation rather than accumulation, the narrative that once powered its sky-high premium over its Bitcoin holdings is coming under serious scrutiny. For investors who bought into Strategy as a turbocharged Bitcoin bet, the current trajectory looks far less like a high-speed highway and far more like a vehicle stuck in reverse.