MicroStrategy Plunges 5.21% as Analysts Turn Bearish

On April 3, 2025, MicroStrategy's stock experienced a significant drop of 5.21% in pre-market trading, reflecting a notable shift in investor sentiment.

Monness Crespi Hardt, a prominent financial services firm, has recently assigned a "sell" rating to MicroStrategy, marking the first bearish stance on the company. This rating change is accompanied by a price target that suggests over 25% downside potential, primarily due to the company's recent struggles in selling securities to acquire Bitcoin.

Gala, an analyst, has also downgraded MicroStrategy's stock from "neutral" to "sell," making him the sole bearish analyst among the 14 surveyed by FactSet. This shift in analyst sentiment underscores growing concerns about the company's aggressive financial strategies, particularly its use of debt to fund Bitcoin purchases.

Peter Schiff, a well-known economist, has warned that MicroStrategy's heavy investment in Bitcoin could pose significant risks. He cautions that if Bitcoin enters a prolonged bear market, MicroStrategy might be forced to sell its holdings at a loss, potentially exacerbating the downward pressure on Bitcoin's price.