Even as Microstrategy continues to be in unrealized losses thanks to slump in Bitcoin prices, it is affecting company’s shares. Ahead of the company’s Q2 earnings next week, Jefferies downgraded it to underperform from hold. There could well be an update from Microstrategy about its plans on Bitcoin holdings.
What Could Be Microstrategy’s Bitcoin Strategy In Near Future?
In a latest, Brent Thill, an analyst with Jefferies, said the company’s lack of execution on its business intelligence impacted the decision. He added that an update on Microstrategy’s Bitcoin strategy is also expected from the company. This becomes even more critical amid a prolonged bear market sentiment witnessed in the crypto space in last few months.
“We expect an update on management’s intent to continue to invest in Bitcoin. The downbeat coverage is due to MicroStrategy’s lack of execution on its business intelligence business amid a tougher macro backdrop.”
Meanwhile, the downgrade negatively impacted the company’s share price in pre-market trading.
Michael Saylor Strong Belief In Bitcoin Changes Nothing For Microstrategy?
Michael Saylor, founder and CEO of Microstrategy, is a huge supporter of Bitcoin. He was on multiple occasions vocal in his support for the top cryptocurrency. Recently, Saylor predicted a massive price increase for Bitcoin in the long term. “As long as the price of Bitcoin does not get to zero, it will get to a million,” he said in an interview last month.
