MicroStrategy’s stock, which once moonshot over 2,500% thanks to its aggressive Bitcoin accumulation, is now facing a stark reality check. Wall Street analyst Gus Gala from Monness Crespi slapped a “Sell” rating on the company (MSTR) just two weeks after a neutral initiation, suggesting the Bitcoin buying spree might be its undoing.
Gala argues MicroStrategy’s magic trick of funding its Bitcoin habit through share issuance is losing its pull. With a portfolio bulging at 528,185 BTC and weekly shopping sprees continuing, the analyst believes the company will struggle to keep tapping the equity markets. This forces a potential shift to less favorable fixed-income routes to finance their digital gold rush.
The Monness Crespi analyst’s $220 price target throws a bucket of ice-cold water on MSTR’s investors, signaling a potential 30% plunge from its current $300 perch. It appears Wall Street is betting that MicroStrategy’s Bitcoin bonanza may have reached its peak, and the ride down could be bumpy.