Wall Street Remains Bullish on Strategy Despite Stock Price Drop
Wall Street maintains a bullish outlook on Strategy despite recent volatility, while bitcoin miners increasingly diversify into artificial intelligence to offset sector headwinds. New data reveals a structural maturation in the asset class, that bitcoin settlement volumes have surpassed major credit card networks, and institutional funds now control nearly 7% of the total supply. Stay up on the crypto news that matters with "Crypto Currents," daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio, Also, subscribe to ourfor the Crypto Fly By weekly recap.ANALYSTS RETAIN CONVICTION IN STRATEGY DESPITE PULLBACK:Despite a punishing 60% drop in share price that wiped out $73B in value, Wall Street analysts are refusing to quit on Strategy., 15 of the 19 analysts covering the bitcointreasury firm maintain buy ratings, with a median price target of $485, implying a potential 150% upside. The bullish thesis relies on a rebound in bitcoin prices boosting the company's massive holdings. Analysts note the upside potential stands out even compared to high-growth firms like Viking Therapeuticsand Aurora Innovation. However, S&P Globalrecently assigned the firm a junk credit rating, and some analysts see competition from new digital asset treasuries diluting Strategy's premium.MINERS FACE "CRYPTO WINTER" SQUEEZE AS AI PIVOT GAINS URGENCY:A severe downturn has pushed bitcoin miners to the brink of unprofitability, prompting an urgent acceleration toward artificial intelligence infrastructure to ensure survival., a record low "hash price" has left total expenses exceeding revenue for most public operators, with the break-even cost for many firms climbing well above bitcoin's recent trading level of approximately $92,000. The divergence has forced a fundamental shift in the sector; while companies face a "grim" Q4 in mining, firms like IREN (IREN) have seen shares surge fourfold this year by securing high-performance computing contracts. As H.C. Wainwright notes, investor interest has effectively decoupled from bitcoin production, rewarding only those miners like Bitfarmsand Core Scientificthat are successfully converting power capacity into data centers for hyperscalers like Microsoftand Google.BITCOIN FLIPS VISA VOLUME, STRIVE AND KINDLYMD TAP MARKETS FOR CAPITAL:Bitcoin is cementing its role as a global settlement layer. Over the last 90 days, the network processed $6.9T in settlement volume, surpassing both Visa's$4.25T and Mastercard's$2.63T. This utility is driving traditional finance integration.Corporations are leveraging capital markets to fund aggressive digital asset accumulation. Strive, which is acquiring Semler Scientific,to fund further bitcoin purchases. Separately, CoinDesk notes that KindlyMDIn related news, American Bitcoinincreased their bitcoin holdings to 4,783 bitcoin.TENX LISTS ON TSXV AND SUPERSTATE LAUNCHES ISSUANCE:New infrastructure players are entering the public markets. TenX Protocols has begun trading on the TSX Venture Exchange after raising nearly $24M.the company, backed by HIVE Digital, plans to stake tokens across networks like Solana, Sui, and Sei.PRICE ACTION:As of time of writing, bitcoin was trading at $92,399.17, while ether was trading at $3,372.32,.
