Michael Saylor's Strategy’s (MSTR) big Q4 loss looks dramatic, but bitcoin would have to fall below $8K to trigger trouble
Analysts say Strategy's massive Q4 loss, driven by non-cash accounting, does not signal a liquidity crisis or forced bitcoin sales.Summary
Wall Street analysts covering Strategy (MSTR) largely agree that despite reporting a dramatic $12.6 billion net loss for Q4, driven by non-cash mark-to-market accounting related to bitcoin's price decline, the company is not facing a liquidity crisis or forced bitcoin sales. Strategy holds 713,502 bitcoin against $8.2 billion in debt, and analysts noted that true balance-sheet stress would only occur if bitcoin dropped below $8,000 for an extended period, as none of the company's debt has price-related covenants. Analysts from TD Cowen and Benchmark remain constructive on the stock, viewing Strategy as a way to gain leveraged bitcoin exposure, with Benchmark reiterating a Buy rating and a $705 price target based on a long-term bitcoin price assumption.
(Source：CoinDesk)