Canaccord cuts MicroStrategy stock price target, maintains buy rating

Broker Canaccord Genuity said in a research report on Monday that it lowered the target price of MicroStrategy stock from $1,810 to $1,590, while maintaining a buy rating. The report pointed out that the main drivers of the new target price are the continued appreciation of Bitcoin and some revaluation of its software business. MicroStrategy shares fell 2.5% to $1,261 in after-hours trading. (CoinDesk) Previous news, MicroStrategy released Q1 financial report, with a net loss of $53.1 million in the quarter. Specifically, the company recorded $191.6 million in digital asset impairment losses in the quarter, 10 times the same period last year. Its revenue also fell 5.5% to $115.2 million compared with the first quarter of 2023. It is worth mentioning that the company has not yet adopted the new fair value accounting standard for digital assets, which will take into account the 65% increase in the fair value (or market value) of Bitcoin this quarter. The company currently holds a total of 214,400 bitcoins, with a total value of $7.54 billion, or $35,180 per coin. Since the end of the fourth quarter, the company has purchased 25,250 bitcoins at a price of $65,232 per coin, totaling $1.65 billion. In addition, the company purchased an additional 122 BTC in April, spending $7.8 million. As of March 31, MicroStrategy reported holding 214,278 BTC. The company may have purchased 32 BTC after March 19, when it disclosed holding 214,246 BTC.