Citigroup Downgrades Microstrategy to ‘Sell’ Rating Over ‘Aggressive’ Bitcoin Purchases

Citigroup has downgraded the Nasdaq-listed, pro-bitcoin Microstrategy to a “sell” rating after the company announced that it would offer $400 million convertible senior notes to buy more bitcoin. Microstrategy currently holds about 40,824 bitcoins.

Citi Analyst Uncomfortable With Microstrategy’s ‘Disproportionate Focus on Bitcoin’

While Citigroup has recently been bullish on bitcoin, Citi analyst Tyler Radke is not so convinced by Microstrategy’s announcement on Monday that it intends to offer $400 million of convertible senior notes and use the sale proceeds to purchase more bitcoin.

Radke downgraded Microstrategy Inc. (NASDAQ: MSTR) from “neutral” to “sell” on Tuesday