MicroStrategy Inc. shares fell by 13.9% yesterday after Citi analysts said its customers should sell the company's stocks, The Block has reported.
Citi analysts have criticized MicroStrategy's plans to issue $400M in convertible notes in order to increase its investment in Bitcoin.
Citi experts have called the recent spike in MicroStrategy's stock price "excessive" and believe this could affect software investors. According to the company's analysts, the success of the company's plan to invest the company's reserves in Bitcoin is not clear.
Experts believe the strategy focused on notes issuance could be a "deal-breaker" for investors. MicroStrategy CEO's focus on Bitcoin could weaken the focus on the company's operations.
However, Citi analysts have also increased the fair value of MicroStrategy shares from $200 to $250. The estimate is based on the Bitcoin price of $19,200.
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