Wall Street is quickly withdrawing confidence in Strategy's highly leveraged bitcoin accumulation strategy.

On June 30, blockchain media outlet U.Today reported that asset manager Canaccord Genuity cut its price target on Strategy shares MSTR to $130 from $163 and issued a new warning about the company's bitcoin acquisition structure.

Canaccord analysts said Strategy's model can work in an uptrend but is vulnerable in the opposite direction. They said, "Like an automobile, which drives better in forward gear versus reverse, so does MSTR's BTC acquisition model." VanEck's head of digital asset research Matthew Sigel (매슈 시걸) said such criticism applies to most structures that use leverage.

The key point is that the debt-fuelled approach to piling up bitcoin is no longer supporting the stock's premium. TD Cowen recently also cut its price target on Strategy to $260 from $400. TD Cowen called the company's new capital system "constructive" and kept its buy rating. It cited a weaker bitcoin outlook as the main reason for the target cut.

The market is warning that Strategy is losing its appeal as an alternative investment vehicle leveraged to the bitcoin price. Amid this trend, the company recently made a major policy change and approved large-scale bitcoin sales.

Strategy can now cash in some of its cryptocurrency holdings. The company plans to sell up to $3.25 billion of bitcoin to bolster its dollar reserves, pay preferred stock dividends and use the proceeds for share buybacks. It is moving from repeatedly raising funds to add bitcoin to the opposite phase of selling holdings to defend cash.

In this process, dividend burdens have emerged as a new risk factor. Financial commentator Peter Schiff (피터 시프) warned that the monetisation programme could trigger a market "death spiral" and recently again pointed to the burden of dividend obligations. He said, "STRC's current yield is around 15 percent," and claimed that to lift the price back to $100, Strategy would need to raise the dividend rate to 15 percent from 12 percent. He said a higher dividend rate could increase cash burn and could force the company to sell more bitcoin earlier to maintain a minimum dollar cash balance.

The stock has also weakened. Based on recent market data, Strategy is likely to post a monthly decline for an 11th month out of the last 12 months. The stock fell about 41 percent in June alone. Since the launch of STRC, the stock has underperformed bitcoin itself more clearly.

As a result, the market's focus is narrowing to 2 points. One is whether Strategy can steadily handle dollar liquidity and dividend obligations through bitcoin sales. The other is whether the existing accumulation model using debt and preferred stock can still work when bitcoin prices are weak. With target cuts overlapping with a weak share price, Strategy's bitcoin leverage strategy has entered a phase of scrutiny of the structure itself.

Canaccord on $MSTR this morning: "Like an automobile, which drives better in forward gear versus reverse, so does MSTR's BTC acquisition model." True of most things on leverage.