Michael Saylor’s MSTR gets cut to sell Wall Street Analyst to Possible Bitcoin (BTC) Purchase Risk
Although the aggressive purchase of Strategy (MSTR) of Bitcoin (BTC) has sent its shares to grow more than 2,500% in the last five years, an analyst has argued that the reverse could occur soon.
“While we are negative in many aspects of the start, we get the addition of confidence that the convertible release strategy is likely to be -tap,” Monness Crespi analyst Gus Gala writes, which drops MSTR to sell only two weeks after the start of the neutral scope.
The strategy is currently holding 528,185 BTC in its balance and buying so much quantity almost every week over the last few months, funded by the standard sharing and sale of the initial preferred series Strk.
The target price of Gala $ 220 only suggests shy of 30% downside from the current price to $ 300 place.
Gala argued that it would be more difficult for MSTR to raise money to buy Bitcoin by sharing shares, forcing the company to move towards fixed income vehicles.
“If fixed income security has not been a greater part of the release, the BTC treasury approach will be further challenged.”
Gala noted that MSTR is already using $ 18.6 billion of $ 21 billion that is a common part of the market offer. The company also raised another $ 711 million last week through the STRF, the second series of preferred stock.
