Bitcoin just lost over 50% of its value, with analyst Richard Farr predicting it will hit zero due to environmental concerns and institutional hurdles. Michael Burry also criticized MicroStrategy’s speculative bets on the cryptocurrency. Despite this, H.C. Wainwright raised MSTR’s target price to $540, showing continued bullish sentiment.

MicroStrategy, led by Michael Saylor, buys Bitcoin using proceeds from equity and debt financings. The company’s stock is down over 70% from its 52-week high, with total debt of $8.2 billion and cash of $2.3 billion. Strategy’s future is tied to Bitcoin’s fate, with analysts bearish on both.

Strategy reported a -193% drop in EPS due to the volatile nature of Bitcoin prices. With 713,502 Bitcoins on its balance sheet at an average cost of $76,000 per Bitcoin, the company is in the red as Bitcoin’s value declines. Despite this, 13 out of 16 Wall Street analysts rate MSTR as a “Strong Buy.”

H.C. Wainwright’s target price upgrade on MSTR stock to $540 despite its recent poor performance reflects the continued bullish outlook on the stock. This optimism contrasts with the negative sentiment surrounding Bitcoin and MicroStrategy’s heavy investments in the cryptocurrency.

Read more at Yahoo Finance: The Shocking Reason This Analyst Says Michael Saylor and MicroStrategy Stock Will Take Bitcoin Prices to $0