Wall Street analysts are signaling a shift in their stance on MicroStrategy’s (MSTR) strategy regarding its Bitcoin holdings. Investment firm Monness Crespi Hardt recently downgraded the stock from neutral to sell, citing that the company’s attempts to fund its Bitcoin purchase through debt issuance are now considered “tapped out.” Analysts believe MSTR is running low on financial leverage for their Bitcoin investments. 2023 has seen a significant rise in Bitcoin prices due to various factors including DeFi growth and institutional investment, but recent reports suggest that this trend might be waning. 2024 marks a shift from debt-funded Bitcoin purchases towards fixed income issuance as Strategy seeks new funding sources for its Bitcoin holdings. This change comes after the company reached nearly half of its three-year plan to raise $42 billion in equity and debt, which was primarily intended to buy Bitcoin worth the same sum. 2024 has seen a decrease in investor interest, likely due to a lack of liquidity in fixed income securities. The firm’s strategy now relies on these securities to fund its Bitcoin holdings. MSTR’s stock price has been heavily impacted, with analysts expecting it to drop by 23% based on the firm’s latest downgrade. 2024 has seen a decline in investor interest for Bitcoin as a result of a slump in the cryptocurrency market and a lack of clear growth drivers. This volatility in Bitcoin’s prices has also affected the company’s stock price, leading to uncertainty in the market. 2024 marks a shift from debt-funded Bitcoin purchases towards fixed income issuance as Strategy seeks new funding sources for its Bitcoin holdings. This change comes after the company reached nearly half of its three-year plan to raise $42 billion in equity and debt, which was primarily intended to buy Bitcoin worth the same sum.