MicroStrategy price target lowered to $110 from $140 at Jefferies

Jefferies analyst Brent Thill lowered the firm’s price target on MicroStrategy to $110 from $140 and keeps an Underperform rating on the shares. Although the company announced yesterday its first bitcoin sale for tax purposes, it remains committed to acquiring more bitcoin, Thill tells investors in a research note. MicroStrategy has $454M remaining to issue additional equity, which can be used acquire more bitcoin or mitigate near-term liquidity and solvency risk, says the analyst. He points out that the company’s $4.03B bitcoin investment is now worth $2.2B, implying a $1.8B loss, or 45%. Thill believes the stock’s premium valuation relative to peers is not justified given the "lower growth profile of the business."