Break or Pass – Michael Saylor, MicroStrategy’s CEO, has gone from crypto-enthusiast to Bitcoin (BTC) maximalist fanatic.
This is not without worrying the rating agencies, who view this publicly traded company as a „ALL-IN“ on the king of crypto.
Michael Saylor in adoration before Satoshi Nakamoto
This, combined with the latest announcement of new bonds to finance the purchase of Bitcoin Billionaire is considered too „aggressive“. As a result, MicroStrategy’s share price valuation has been downgraded from „neutral“ to „sellers“ by Citigroup analysts.
MicroStrategy is in the midst of a compulsive bitcoin buying crisis. After buying another $50 million in cash, the company is even going into debt, issuing $550 million in bonds, to buy more and more Bitcoin.
And its CEO, Michael Saylor, is pushing hard to continue its crypto-purchases.
„If God had had to design digital gold in cyberspace, he would have designed Bitcoin … People who are aware of this know that God’s name is Satoshi [the creator of Bitcoin]. »
Michael Saylor, in an online interview with Binance CEO Changpeng Zaho
Although one would expect no less from someone who revealed that he bought just over 17,732 BTC ($328 million at the current rate) on his own account, his words may be getting a little too extreme.
The MicroStrategy Stock Rating (MSTR) is lowered
„Extremist“ is in any case what the rating agencies for listed shares must think.
„MSTR’s bitcoin investment (…) presents additional risks (…) even though it has earned $250 million (or $26 per share or +20% on a per share basis) since August 20 (…) Although impressive, this figure is derisory compared to the 172% return on the share. At the current share price, our analysis suggests that the market is based on overly optimistic valuation scenarios (…)“.
Tyler Radke, Citigroup analyst, quoted by the business media Seeking Alpha
This rating downgrade then caused the MSTR share price to drop slightly, by about ten percent. Some analysts questioned the potential benefits of the MicroStrategy board’s choices.
MicroStrategy’s decision to focus on Bitcoin is seen as a rather worrisome move by traditional financial players, especially those specializing in computer software. Indeed, it seems that Michael Saylor is going beyond simply insuring Bitcoin as a reserve of value against the dollar, and is caught up in some kind of speculative madness.