Recently, analysts from Monness Crespi Hardt downgraded Strategy to 'sell', expressing concerns over its future strategy.
Strategy's Rating Downgrade
Monness Crespi Hardt downgraded Strategy's rating to 'sell' with a price target of $220 per share, 23% below its current level. Analyst Gus Galá noted that Strategy has exhausted its convertible debt issuance capabilities used for Bitcoin purchases.
Weak Demand for Bonds
Strategy plans to rely more on fixed income instruments, but demand remains weak. Galá emphasized that the market will likely begin to reduce the premium on Strategy's shares, given the lackluster interest in new financial products.
Bitcoin's Market Struggles
Amid Strategy's issues, Bitcoin is also facing challenges, having lost over 10% in the first quarter of 2025. MEXC Exchange COO Tracy Jin noted that the market is in a waiting phase. She also pointed out the potential impact of geopolitical risks and tighter monetary policy on cryptocurrency interest.
Strategy needs to urgently adapt to new market realities, with the situation on the cryptocurrency market adding further challenges.
