Michael Saylor's investment firm, MSTR, has been downgraded to a 'sell' by Monness Crespi due to concerns about its aggressive Bitcoin acquisition strategy, which has seen significant growth over the past five years. The firm noted that MSTR's ability to continue funding its Bitcoin purchases through share issuance may be reaching its limits. Analyst Gus Gala expressed concerns that the current convertible issuance strategy is likely exhausted, making it harder for MSTR to raise funds for new Bitcoin investments. MSTR currently holds 528,185 BTC and has been acquiring Bitcoin nearly every week, primarily funding these purchases through issuance of common shares and preferred stock. With approximately $18.6 billion already utilized from its $21 billion share offering, the company may need to shift towards fixed income vehicles for future transactions. Gala set a price target of $220, indicating a potential downside risk of around 30% from the present share price, raising alarms about the sustainability of MSTR's Bitcoin treasury strategy amidst dwindling funding options.

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