The Monness Cresspi has lowered the Strategy Promotions rating belonging to Michael Saylor, from “neutral” to “sell”, setting a target price of $ 220 per share, which involves almost 30% reduction from the current price (about $ 300).
MonNess Cresspi analysts explained their assessment of Strategy strategy, which resorted to financing bitcoins purchases to instruments such as the release of convertible bonds, the sale of promotions and lending. Experts called this strategy “a machine of constant attracting Strategy capital.” They called factors that indicate that the strategy is close to the exhaustion of their capabilities.
Firstly, the market seems to have reached the absorption of the convertible Strategy bonds and investors show less interest in new releases, which complicates further financing through debt instruments.
Secondly, the recent Strategy proposal of indefinite privileged shares for $ 700 million was “below the expected demand”, which also signals a decrease in “financial appetite” of investors to such instruments of this company.
At the same time, the transition to more expensive alternatives, such as fixed income tools or highly profitable privileged shares of the company, can make the Michael Seylor strategy even less attractive, especially if the price of the first cryptocurrency does not grow quickly enough to justify the costs.
Michael Saylor himself remains an optimist, calling for investors “not to be stupid” and buy BTC on subsidence. His belief in the long -term potential of bitcoin contrasts with short -term fears of analysts. The businessman made a confident forecast for the growth of the Bitcoin course for the next 20 years and said that by 2045 the price of VTS could reach $ 13 million.
Source: Bits

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