According to their latest research, Wall Street analysts expect Strategy’s Bitcoin buying trend to slow. On April 1, 2025, Monness, Crespi, Hardt & Co. issued a “sell” Rating for Strategy (MSTR) due to the stock’s nonstop need for additional funding. Strategy holds 528,185 BTC, but its stock jumped 2,500 percent over five years despite market speculation that its funding options may soon run out. Does Saylor need to change approaches with Bitcoin now that his strategy’s time has passed? Let’s dive in.
The Downgrade: Monness Crespi Sounds the Alarm
Analyst Gus Gala has stopped supporting the Bitcoin hype notion. Within fourteen days, he turned from MSTR’s neutral rating to a sell recommendation by setting a $220 target price, representing a 27% decline from its present stock price of $302.538. Gala said in his recent update that the company appears near its funding limits on convertible debt. Strategy uses its share sales and preferred stock STRK and STRF to fund Bitcoin purchases, but its resources are nearly exhausted.
- Due to funding difficulties, Gala predicts that raising money from shareholders will become harder, making fixed-income methods more expensive for its growth plans.
- Investors in MSTR would suffer tremendous pain from a 30% stock price drop, as its current market value stands at $302.538, up from yesterday’s mark of $288.27.
People on X shared their negative outlook when they said, “The sell signal on $MSTR proves they can’t use debt to fund Bitcoin purchases anymore.” The second person declared, “The ATM is almost empty despite holding 528 thousand bitcoin in reserves.” Sentiment’s tilting cautiously.
Bitcoin Haul vs. Funding Squeeze
Strategy holds 528185 Bitcoins, which now have a market value of around $45 billion at $86,000 per Bitcoin, even after recent swings. The Saylor crew obtained 22,048 Bitcoins on March 31 for $1.92 billion and paid $87,146 per token. This new BTC purchase outmatched the recent deal, which bought 6,911 BTC at an average of $84,529. The firm must continue drawing funds from its $21 billion share offering and $711 million from preferred stock drops to keep this surge going.
Gala indicates that Bitcoin’s buying ability will decrease when the ATM funding pool reaches $2.4 billion. Bitcoin’s treasury benefits could weaken if the company selects bonds or preferred stock as replacement assets for its investments.
MSTR stock advanced 2500% during the last five years (from $106.503 in April 2024 to $302.538) because investors saw a correlation with rising Bitcoin prices, but buying power obstacles could erode this connection.
According to Gala, the BTC strategy will fail if fixed incomes do not improve. The community questions whether Saylor can continue his debt spree and what would happen if he stopped.
Saylor’s Machine: Genius or Gimmick?
Saylor has applied a Bitcoin strategy since 2020 by offering stocks and debt instruments to buy Bitcoin. He gains from the market by buying Bitcoin cheaply and selling it at a higher price through accretive dilution. Market participants now recognize this development because Monness Crespi downgraded the company. MSTR is up $9.049 this morning because its market value stands at $75 billion while remaining priced at $302.538. Yet, the analyst sees cracks.
The Strategy software unit performs steadily while Bitcoin remains the main focus. The company’s heavy dependence on predictable income would shift market focus from making profits to facing threats.
When BTC falls below its $66,608 purchase price of $33.7 billion, spent investors will resist selling, but this drop will challenge their trust.
How Does MSTR Approach Bitcoin in the Future?
After posting the same Bitcoin message yesterday, Saylor reaffirmed his belief that Bitcoin will become a $100 trillion asset. The $220 investment goal stands as a clear performance test for Gala. The company will probably borrow more money under uncertain funding circumstances to maintain its plans, but this would probably hurt the confidence of its shareholders. As both a buyer and investor in Bitcoin, MSTR creates market volatility by increasing demand while exposing itself to potential risks when Bitcoin values decline.
MSTR price rises while the company maintains its premium status, and Michael Saylor finds fresh funding sources.
As funding stops and Bitcoin declines, the company faces business failures.
People affirm that Saylor shows genius since he reached $44 billion in BTC holdings. A different user inquired, “Wishing luck to someone who invests heavily in BTC while having too many debts.” Numerous investors at Monness Crespi believe the MSTR share price will decrease to $302.538. Will Saylor prove to be successful one more time? The clock’s ticking.
