Although the aggressive purchase of Bitcoin’s strategy (MSTR) (BTC) has shown more than 2,500% in the past five years, an analyst maintains that the reverse could soon be the case.
“Although we were negative in several respects during the initiation, we have accessed additional confidence that the convertible emission strategy is probably exploited,” wrote Monness Cressi Gala, downgrading MSTR to sell only two weeks after the start of neutral coverage.
The strategy currently contains 528,185 BTC on its assessment and has bought large quantities almost every week in recent months, mainly funded by the common action program and also sales of its initial STRK initial series.
The $ 220 gala price target suggests just under 30% of the current price in the $ 300 area.
Gala has argued that it will become more and more difficult for MSTR to collect funds to buy Bitcoin via the issue of shares, forcing the company to move to fixed income vehicles.
“If fixed income titles do not become a larger part of the program, the BTC treasure strategy will be more and more disputed.”
Gala noted that MSTR has already used $ 18.6 billion in its joint sharing offer of $ 21 billion. The company also raised another $ 711 million last week via Strf, its second series of privileged shares.
