MSTR Stock Prediction: Wall Street Reiterates $212 Target as STRC Soars 12% on Restructuring

Strategy (NASDAQ: MSTR) stock gained by 12% on June 29, to close trading at $92. The gain followed Strategy’s announcement that the company plans to start selling Bitcoin to boost its USD reserves, a move that led to Cantor Fitzgerald reiterating that the stock could reach $212.

This restructuring plan also boosted sentiment around the STRC preferred stock and it gained by 12% on June 29 to close trading at $82.

Wall Street Firm Remains Bullish on MSTR After $1.25B Bitcoin Restructuring Plan

Cantor Fitzgerald has maintained a buy rating on MSTR stock after Strategy announced it is changing its Bitcoin treasury model from being a net buyer to selling BTC whenever is necessary.

Fitzgerald says that these changes have alleviated concerns around the company being illiquid because Strategy could raise $1.25 billion for its USD reserve by selling BTC.

Strategy is also increasing the dividend paid on its STRC preferred stock from 11.5% to 12%. This higher dividend rate increased the demand for STRC and MSTR on June 29, and the preferred stock gained by 12%.

STRC had dropped to an all-time low on June 26 after concerns emerged about whether Strategy could pay investors their dividends following a loss of more than $13 billion in the 847,363 BTC that the company holds.

Now, buyers are rushing back to the preferred stock to chase the 0.5% dividend increase, with the buy volumes reaching 7.47 million shares on June 29. These buy volumes were the highest seen by STRC since May 14.

MSTR Stock Price Bounces From Crucial Support Level

The MSTR stock price dropped to the support level of $82 on June 29, and a previous MSTR price analysis by CoinGape had predicted that dropping below this support level could push it to $65.

MSTR might avoid this drop to $65 because bulls have defended this support at $82 after the recent news about restructuring brought buyers back.

If Strategy shares close above $82 for three straight days, they could move to the psychological barrier at $100.

The journey upwards could also reach the 23.6% Fib level of $109 if buying pressure remains high after the psychological barrier at $100 breaks.

The RSI reading of 32 shows that the momentum is still favoring bears. However, the RSI reading has bounced from an oversold level of 23, suggesting that those selling MSTR stock are losing steam.

Peter Schiff Says Strategy’s Restructuring Plan Could Trigger Bitcoin Crash

Bitcoin critic Peter Schiff has commented on Strategy’s plan to sell 1.25 billion Bitcoin, saying that while it might be good for MSTR price, it is bad for Bitcoin.

Schiff was speaking in an interview with Wolf of All Streets, where he said Strategy needs to sell Bitcoin to raise money for four things: pay dividends on STRC, raise USD reserves, pay back debt, and buy back MSTR stock.

“I don’t see how the market is gonna absorb this shift where the biggest buyer becomes the biggest seller,” Schiff said.

Schiff also drew comparisons with when Strategy sold 32 BTC in May, saying that if such a minuscule sale made the price of Bitcoin to drop to $59,000, selling 54,000 BTC would have a more profound effect.