Mizuho Cuts Strategy Target to $213 After Lowering Long-Term Bitcoin Forecast

Mizuho has reduced its price target on Strategy to $213 from $265, while keeping an "Outperform" rating, citing a lower Bitcoin price outlook through the end of 2027. The revision follows Strategy's recent sale of 3,588 Bitcoin, which generated about $216 million in proceeds. After the transaction, the company holds 843,775 Bitcoin and about $2.55 billion in cash. Mizuho also cut its end-2027 Bitcoin target to $71,500, prompting a corresponding reduction to its valuation for Strategy, a company widely viewed as a Bitcoin treasury proxy. The sale briefly weighed on sentiment. Bitcoin dipped to roughly $61,000 before rebounding above $63,000, and Strategy's shares (MSTR) climbed back above the $100 level. Yahoo Finance data showed the stock closing above that threshold and trading near $101 in premarket activity. Even so, MSTR remains down more than 34% year to date, reflecting broader pressure during the current crypto downturn cycle. Investor reaction to the move has been mixed. Some see the Bitcoin sale as a sign of pressure, while others view it as a deliberate liquidity-management step. In a July 6 note, Grayscale Research said the transaction may be widely misread, arguing it does not signal financial strain and instead strengthens Strategy's financial position by boosting U.S. dollar liquidity while preserving a large Bitcoin exposure and easing concerns about the company's financing structure. The report said the proceeds are expected to support dividend payments tied to digital credit securities. Market observers also noted that meeting cash needs through a partial Bitcoin sale, rather than additional leverage, could improve the optics of Strategy's balance sheet. The transaction has also revived debate over whether Strategy is moving closer to eligibility for inclusion in the S&P 500. Some crypto researchers argue the ability to raise liquidity by selling holdings during a weak Bitcoin tape demonstrates stronger cash management, potentially addressing issues previously flagged by S&P Global. Others point to the company's growing U.S. dollar reserves and recent repurchases of convertible bonds as signs a more resilient financing model is taking shape. As the discussion evolves, the focus is increasingly shifting from the sale itself to whether Strategy is using it to reduce reliance on fresh financing. If that view gains traction among institutions, the stock's valuation narrative may tilt more toward balance sheet quality and sustainable capital markets access.