Monness Crespi cut Strategy to Sell, says convertible strategy ‘likely tapped’

As previously reported, Monness Crespi analyst Gus Gala downgraded Strategy (MSTR) to Sell from Neutral with a $220 price target The firm argues that the lower than expected absorption of preferreds “highlights limits” to the company’s bitcoin treasury aspirations and adds that it has gained “incremental confidence that the convertible issuance strategy is likely tapped.” The firm reminds investors that Strategy this year is expected to more heavily rely upon fixed income issuance to make its planned bitcoin purchases.