MSTR Stock Price Target Slashed By $100, Bernstein Pushes Bitcoin $150K Forecast To 2027

The July PCE inflation data came in as expected at 3.3% year-over-year, with core prices also meeting expectations. Analysts from various fintech firms commented on the data, noting its impact on market sentiment and asset prices, including Bitcoin. The Fed is not expected to act in August, but a rate hike later this year remains possible.

Bitcoin rose 2.95% to $81,257.98 on 24 August, according to Bloomberg. The cryptocurrency has gained nearly 26% since 19 August, following a US Treasury announcement to accelerate bond repurchases. Bitcoin is up 7.3% year-to-date.

Hackers stole $130 million in Bitcoin from Coldcard wallets due to weak random number generators. Coinkite, the Canadian company behind Coldcard, released new firmware to address the issue. The incident raises concerns about Bitcoin security and may shift power from individuals to institutions, benefiting spot Bitcoin ETFs.

Strategy's net leverage is near zero, with $6.69B in dollar assets nearly matching $6.75B in convertible debt. STRC preferred stock has risen 35% to $97.23, supported by buybacks and bitcoin's recovery. The company has built a $5.1B reserve covering four years of dividends and a $1.59B cash pool for flexible use.

Bernstein analysts predict bitcoin could reach $150,000 by mid-2027 and $300,000 by 2029, driven by macroeconomic trends. They cite a 'debasement trade' and increased institutional interest. Bernstein maintained an Outperform rating on Strategy but reduced its price target to $350 from $450, citing updated bitcoin cycle outlook and equity dilution.

Strategy's 840,447 BTC position, acquired at an average of $75,385 per coin, turned profitable as Bitcoin surged above $81,000. This reversed a $9.5B loss to a $4.7B gain in a week. The company's holdings are now valued at $66B. Strategy also strengthened its cash reserves to $5.1B. Bitcoin's volatility impacts Strategy's financials significantly.