- Citi downgraded Gemini Space Station to ‘Sell’ and cut its price target by more than 50%.
- The bank cited regulatory delays, profitability concerns, cyclical pressures, and restructuring efforts as headwinds.
- Citi also lowered price targets for Strategy, Bullish, and Riot Platforms while raising its outlook for Galaxy Digital.
Gemini Space Station (GEMI), backed by the Winklevoss twins, fell in early morning trade on Wednesday after Citi downgraded the stock to ‘Sell’ from ‘Neutral’ and slashed its price target by over 50% amid a broader reset of its outlook for multiple crypto-linked equities.
The firm lowered price targets on Strategy (MSTR), Bullish (BLSH), and Riot Platforms (RIOT), while raising its outlook for Galaxy Digital (GLXY), as per TheFly. The firm said the estimates were revised to more accurately reflect its recently lowered outlook for Bitcoin (BTC) and Ethereum (ETH) in the coming 12 months.
GEMI’s stock fell as much as 5% in pre-market trade after its price target was cut to $5.50, down from $13, by Citi. On Stocktwits, retail sentiment around the cryptocurrency exchange remained in ‘bearish’ territory, while chatter fell to ‘extremely low’ from ‘low’ levels.
In addition to delays with the cryptocurrency regulation, Citi cited profitability concerns, cyclical challenges, and Gemini's "significant" restructuring for the downgrade to ‘Sell’.
MSTR, BLSH, RIOT Shares Fall After Price Cuts
MSTR’s stock dropped as much as 1.3% in pre-market after Citi reduced its price target on the shares to $260 from $325 and kept a ‘Buy’ rating on the shares. Retail sentiment on Stocktwits around the Michael Saylor-backed Bitcoin proxy remained in ‘bullish’ territory amid ‘high’ levels of chatter over the past day.
Shares of Bullish and Riot also edged lower in pre-market trade. Citi lowered its price target on BLSH’s stock to $65 from $57 and kept a ‘Buy’ rating on the shares. The price target on Riot Platforms took a smaller hit down to $21 from $23, also with a ‘Buy’ rating.
BLSH’s stock edged 0.4% lower while RIOT’s stock dipped 0.3%. While retail sentiment around Riot Platforms remained in the ‘bearish’ zone, sentiment around Bullish improved to ‘bullish’ from ‘neutral’ territory over the past day. Both saw chatter at ‘high’ levels.
GLXY’s stock gained as much as 1.7% in pre-market trade after Citi raised its price target on shares to $28 from $25 and kept a ‘Neutral’ rating. On Stocktwits, retail sentiment around Galaxy remained in the ‘bearish’ zone over the past day.
Bitcoin, Ethereum Outlook Lowered
The revision comes after the bank cut its 12-month price target for Bitcoin by $31,000 to $112,000, down from a prior forecast of $143,000. Its outlook for Ethereum was reduced by $1,139 to $3,175 from an earlier estimate of $4,304. It also cited “stalled” legislative momentum for the CLARITY Act as a key factor.
The overall cryptocurrency market was holding steady ahead of the Federal Open Market Committee’s (FOMC) decision on interest rates, scheduled for announcement later in the day. Bitcoin’s price fell 1.4% in the last 24 hours to just above $73,000. The apex cryptocurrency remains over 40% below its record high of over $126,000 seen in October last year.
Read also: Bitcoin Holds $74,000 Ahead Of Fed Rate Decision, Altcoins Lead Gains
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