Coingecko reports that Citi has lowered its recommendation for MicroStrategy’s stock from ‘neutral’ to ‘sell’ following the firm’s recent announcement to purchase additional Bitcoin (BTC).The downgrade seeks to warn investors that the intelligence company’s Bitcoin euphoria may be overextended.
It also said the firm’s $400 million debt offering signals a ‘disproportionate focus on Bitcoin’ and brings ‘incremental risk to the story’. MicroStrategy’s shares fell by more than 10% to roughly $300.86 in recent trading, though overall it has doubled in value since August.
I initially was happy to hear the news of additional USD 400 million expected to chase BTC with increasing scarcity, however such type of corporate strategy already starts to raise some eyebrows. Is this a company with its own business strategy or a BTC hedge fund?
While BTC is recovering today, perhaps this piece of news will remain dominant in the short period of time
