Odaily News Strategy (formerly MicroStrategy)'s aggressive strategy of buying Bitcoin by selling stocks and bonds may have come to an end. Now, for the first time on Wall Street, an analyst has appeared who advises investors to sell. This analyst is Gus Gala of Monness Crespi Hardt, who made this bearish judgment. Just the day before, Strategy disclosed that it spent $1.92 billion between March 24 and March 30 to buy 22,048 Bitcoins (BTCUSD) at an average price of $86,969.
Gala downgraded MicroStrategy's rating from "neutral" to "sell", becoming the only short position among the 14 analysts covering the company surveyed by FactSet, while the remaining 13 are long positions. Gala said his concern is that investors' response to MicroStrategy's recent issuance of bonds and preferred stocks was "not ideal", and these funds were originally planned to be used to buy more Bitcoin. He believes that the market seems to be close to "saturation", which means that MicroStrategy may have higher costs in the future to raise funds to continue buying Bitcoin. (Barrons)