{"id":33067,"date":"2020-12-09T10:25:26","date_gmt":"2020-12-09T08:25:26","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=33067"},"modified":"2025-08-28T11:57:01","modified_gmt":"2025-08-28T08:57:01","slug":"microstrategy-shares-slump-after-citi-downgrade","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/microstrategy-shares-slump-after-citi-downgrade\/","title":{"rendered":"MicroStrategy shares slump after Citi downgrade"},"content":{"rendered":"<p>In trading on Tuesday, December 8, MicroStrategy Inc. shares fell 13.9%, after plans to issue $400 million in convertible bonds to expand Bitcoin holdings and Citi analysts&#8217; downgrade of the stock to &#8216;sell&#8217;, as reported by <a href=\"https:\/\/www.theblockcrypto.com\/linked\/87054\/citi-microstrategy-stock-downgrade-bitcoin\" target=\"_blank\" rel=\"noopener noreferrer\">The Block<\/a>. <!--more--><\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">New: Citi downgrades MicroStrategy to sell rec, citing concerns around plan to issue debt to buy BTC<\/p>\n<p>The bank says CEO Michael Saylor has been \u00ablargely removed\u00bb from his operational role while making appearances in crypto press. Also, management stock selling has topped 50m. <a href=\"https:\/\/t.co\/yadAxkoSOG\">pic.twitter.com\/yadAxkoSOG<\/a><\/p>\n<p>\u2014 Frank Chaparro (@fintechfrank) <a href=\"https:\/\/twitter.com\/fintechfrank\/status\/1336449042000261123?ref_src=twsrc%5Etfw\">December 8, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The investment bank noted the stock&#8217;s &#8216;overextended&#8217; rally and rising insider selling. Experts say this calls into question <a href=\"https:\/\/u1f987.com\/en\/news\/microstrategy-chief-pledges-not-to-sell-bitcoin-for-a-century\">proclaimed<\/a> strategy by MicroStrategy CEO Michael Saylor to invest the company&#8217;s reserves in Bitcoin.<\/p>\n<p>Experts suggested that the plans to issue the bonds could be the &#8216;last straw&#8217; for investors. The CEO&#8217;s heightened focus on the leading cryptocurrency could divert attention from operating activities and dampen team morale.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p dir=\"ltr\" lang=\"en\">Citi said that the recent rally in MicroStrategy\u2019s stock was \u00aboverextended\u00bb + described its plan to raise $400m via convertible notes to buy BTC as a possible \u00abdeal-breaker for software investors.\u00bb Management selling signals lack of confidence in bitcoin allocation strategy <a href=\"https:\/\/t.co\/J4eCU2B8Bt\">pic.twitter.com\/J4eCU2B8Bt<\/a><\/p>\n<p>\u2014 Frank Chaparro (@fintechfrank) <a href=\"https:\/\/twitter.com\/fintechfrank\/status\/1336449046710538243?ref_src=twsrc%5Etfw\">December 8, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>At the close, MicroStrategy stock traded at $289.45. Since the disclosure on 11 August of <a href=\"https:\/\/u1f987.com\/en\/news\/microstrategy-becomes-the-first-nasdaq-listed-company-to-invest-part-of-its-capital-in-bitcoin\">first purchase<\/a> of Bitcoin for $250 million (21,454 BTC), the stock has risen 134.15%. The first cryptocurrency, Bitcoin, rose 53.9% in the same period.<\/p>\n<p>In September the company <a href=\"https:\/\/u1f987.com\/en\/news\/microstrategy-bets-another-175-million-on-bitcoin\">acquired<\/a> an additional 16,796 BTC for $175 million.<\/p>\n<p>In early December MicroStrategy carried out <a href=\"https:\/\/u1f987.com\/en\/news\/microstrategy-invests-another-50-million-in-bitcoin-at-just-over-19000-per-coin\">the third investment to date<\/a> in Bitcoin for $50 million (2,574 BTC).<\/p>\n<p>According to <a href=\"https:\/\/bitcointreasuries.org\/\" target=\"_blank\" rel=\"noopener noreferrer\">Bitcoin Treasuries<\/a>, the value of the cryptocurrency held by the analytics software provider has risen this year from $475 million to $742.4 million. The current gain on the position is 7.8 times MicroStrategy&#8217;s net income from its core operations last year.<\/p>\n<p>In November, Citi Bank allowed for <a href=\"https:\/\/u1f987.com\/en\/news\/citibank-hails-bitcoin-as-the-digital-gold-of-the-21st-century\">the possibility of Bitcoin rising to $318 315<\/a>, if the cryptocurrency can secure its status as the digital gold of the 21st century.<\/p>\n<p>Subscribe to ForkLog news on <a href=\"https:\/\/www.facebook.com\/forklog\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Facebook<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In trading on Tuesday, December 8, MicroStrategy Inc. shares fell 13.9%. The downgrade was prompted by plans to issue $400 million in convertible bonds to expand Bitcoin holdings, and Citi&#8217;s downgrade of the stock to &#8216;sell&#8217;, The Block reports.<\/p>\n","protected":false},"author":1,"featured_media":33068,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[52,1207,1211],"class_list":["post-33067","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-investments","tag-microstrategy","tag-stock-market"],"aioseo_notices":[],"amp_enabled":true,"views":"15","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/33067","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=33067"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/33067\/revisions"}],"predecessor-version":[{"id":33069,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/33067\/revisions\/33069"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/33068"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=33067"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=33067"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=33067"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}