{"id":128808,"date":"2020-12-08T19:40:57","date_gmt":"2020-12-08T16:40:57","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/citi-downgrades-microstrategy-stock-after-bold-bitcoin-bet\/"},"modified":"2020-12-08T19:40:57","modified_gmt":"2020-12-08T16:40:57","slug":"citi-downgrades-microstrategy-stock-after-bold-bitcoin-bet","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/citi-downgrades-microstrategy-stock-after-bold-bitcoin-bet\/","title":{"rendered":"# Citi downgrades MicroStrategy stock after bold Bitcoin bet"},"content":{"rendered":"<p>&#8220;<strong># Citi downgrades MicroStrategy stock after bold Bitcoin bet <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Shares of MicroStrategy fell on Tuesday after Citibank reportedly downgraded the business intelligence firm over its \u201cdisproportionate\u201d Bitcoin focus.\u00a0<\/p>\n<p>Citi analyst Tyler Radke issued a \u201csell\u201d rating on MSTR shortly after the company announced it was raising more money to buy Bitcoin (BTC). Radke says CEO Michael Saylor\u2019s \u201cdisproportionate focus on bitcoin\u201d puts investors at considerable risk, especially after an \u201coverextended\u201d rally since September. <\/p>\n<p>He <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/seekingalpha.com\/news\/3642471-microstrategy-shares-slide-5_5-after-citi-downgrade-on-disproportionate-bitcoin-focus\">wrote<\/a>:<\/p>\n<blockquote><p>\u201cMSTR&#8217;s bitcoin investment has returned $250M (or worth $26\/share or +20% towards stock) since August &#8217;20. While impressive, it pales in comparison to the 172% return in the stock. At the current stock price, our analysis suggests that the market is pricing in much more optimistic valuation scenarios for the core business and Bitcoin.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/531941cf-e6ed-429e-9a52-27c2838c7a48.png\"><figcaption style=\"text-align: center;\"><em>MicroStrategy stock by Yahoo Finance<\/em><\/figcaption><\/figure>\n<p>MicroStrategy\u2019s share price has been surging since August when the company first announced its Bitcoin play. Many investors view MSTR as an indirect investment in Bitcoin, given the company\u2019s vast digital currency reserves. <\/p>\n<p>On Monday, MicroStrategy <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.businesswire.com\/news\/home\/20201207005918\/en\/\">revealed<\/a> plans to allocate another $400 million to its Bitcoin treasuries. To do so, the company plans to issue $400 million in convertible senior notes. As Cointelegraph reported, $400 million would increase the company\u2019s Bitcoin reserves by more than 20,800 BTC. <\/p>\n<p>MicroStrategy is by far the biggest corporate holder of Bitcoin. It currently <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/bitcointreasuries.org\/\">has<\/a> 40,824 BTC on its books, worth a combined $2.756 billion. <\/p>\n<p>Institutional investors and corporations are turning to Bitcoin as a hedge against inflation and dollar instability. Saylor has <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-09-22\/ceo-says-bitcoin-is-safer-after-moving-firm-s-cash-to-crypto\">likened<\/a> his company\u2019s cash reserves to a \u201cmelting ice cube\u201d as the purchasing power of the U.S. dollar continues to plummet. He believes asset inflation will grow to more than 20% per year. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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Radke says&#8230;<\/p>\n","protected":false},"author":1,"featured_media":128809,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/5ecb96e4-efbc-40f9-bf98-bb0a46880f68.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74937,80179,74355,117],"class_list":["post-128808","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin-price","tag-citi","tag-adoption","tag-business"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/128808","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=128808"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/128808\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/128809"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=128808"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=128808"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=128808"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}