Summary
- "Strategy relied on a Bitcoin purchasing strategy, but due to the limits of convertible bond issuance, there is a possibility of a stock price decline."
- "An analyst from Monness Crespi projected that the stock price could fall by up to 30%."
- "Strategy's current BTC holdings amount to approximately 528,185 BTC ($35.63 billion), which could be a warning signal to investors."
According to CoinDesk, a cryptocurrency-focused media outlet, Strategy (NASDAQ ticker: MSTR) has seen its stock price rise by over 2500% over the past five years due to its aggressive Bitcoin (BTC) purchasing strategy, but there is analysis suggesting this strategy could become a weakness.
Gus Gala, an analyst at New York-based stock research firm Monness Crespi, stated, "It appears that Strategy's convertible bond issuance strategy has effectively reached its limit," adding, "If the proportion of fixed-income securities like bonds does not increase, the BTC purchasing strategy will become unsustainable."
He further added, "There is a possibility that the stock price could fall by 30% from the $3000 level."
Currently, Strategy holds 528,185 BTC (approximately $35.63 billion), with an average purchase price of $67,458.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
