What happened Shares of MicroStrategy (NASDAQ: MSTR) were falling Tuesday after the company said Monday that it plans to offer $400 million worth of convertible senior notes to qualified institutional buyers. With the money raised, it plans to purchase more bitcoin. An analyst downgraded the stock following the announcement. The tech stock fell by as much as 11.9% on Tuesday morning, and was down by 10.7% as of 1:05 p.m. EST. Image source: Getty Images. So what Investors clearly weren't enthusiastic about the announcement. Nor was Citi analyst Tyler Radke, who downgraded the company's stock from neutral to sell. MicroStrategy's stock began skyrocketing last month, partly after a short-seller issued a positive report about the company. But Radke believes MicroStrategy's share price gains have become "overextended," and that this new debt offering and bitcoin-buying strategy make the company an incrementally riskier investment. Even after Tuesday's slide, MicroStrategy's stock is still up by about 110% year to date. Now what In a Dec. 4 SEC filing, MicroStrategy said that it now holds 40,824 bitcoins. CEO Michael Saylor said in a recent interview with CoinDesk that the company's strategy of purchasing bitcoin is meant to "preserve our treasury." Based on Tuesday's share price drop, it appears investors may not approve of that approach. 10 stocks we like better than MicroStrategyWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and MicroStrategy wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Chris Neiger has no position in any of the stocks mentioned. The Motley Fool recommends MicroStrategy. The Motley Fool has a disclosure policy.Source