Analyst slashes MicroStrategy price target ahead of Q4 earnings

Core Viewpoint - Analysts have reduced the stock price target for MicroStrategy (now known as Strategy) despite the company's ongoing efforts to increase its Bitcoin holdings [1][4]. Group 1: Company Performance and Strategy - MicroStrategy has transitioned from a software company to a Bitcoin-focused Digital Asset Treasury (DAT) during the pandemic, becoming the largest corporate Bitcoin holder with a treasury of 687,410 BTC as of January 15 [3]. - The company made a significant Bitcoin purchase of 13,627 BTC for $1.25 billion between January 5 and January 11, marking its largest acquisition since July 2025 [3]. - Despite recent Bitcoin price weakness, the company has continued to purchase Bitcoin, aligning with its long-term strategy [5][6]. Group 2: Analyst Insights and Price Target Adjustments - TD Cowen has lowered its price target for Strategy from $500 to $440 while maintaining a "buy" rating, marking the second reduction in two months [4]. - The analysts cited near-term pressure on key performance metrics due to the recent decline in Bitcoin prices, which influenced their financial modeling for the company [5]. - The revised price target reflects the impact of Strategy's accelerated Bitcoin accumulation on its financial outlook [5].