Maxim Group Cuts MSTR Target to $215 as Strategy Continues Selling Bitcoin

Maxim Group has reduced its target price for MSTR to $215, citing Strategy's decision to sell more Bitcoin this week. This is not the first time Maxim has lowered its target; in fact, it's part of a trend among Wall Street firms. Cantor Fitzgerald and B. Riley have also cut their targets, with Cantor lowering its price from $212 to $186 and B. Riley reducing its target from $215 to $155.

Strategy, the company behind MSTR, has been selling Bitcoin in an effort to stabilize its cash reserves. The move comes as a surprise given the company's previous stance of 'never selling' BTC. In fact, Michael Saylor, Strategy's leader, has repeatedly promoted this approach and claims he personally hasn't sold any Bitcoin.

Despite these sales, Strategy still holds the largest corporate Bitcoin treasury in the world with 842,138 BTC. The company has generated $290.6 million in net proceeds from selling 3.01 million MSTR shares. It has also added $250 million to its U.S. dollar reserve, bringing the total to $4 billion.

Strategy's decision to sell more Bitcoin has raised concerns that it may continue to reduce its holdings if the bear market persists. The company reported a net loss of $8.22 billion in the second quarter, largely due to an unrealized loss in its BTC holdings. However, Strategy's management believes its cash reserve will help support dividend payments on preferred stock and cover interest payments on outstanding debt.