Investment firm Kerrisdale Capital released a report suggesting MicroStrategy’s stock is overvalued, claiming it is trading at a premium compared to Bitcoin’s fundamental value. Kerrisdale Capital, which holds a short position in MicroStrategy stock and a long position in Bitcoin through the spot Bitcoin ETF from BlackRock and Fidelity, has recently seen MicroStrategy’s stock price surge amid a rise in Bitcoin prices. The point was emphasized.
Kerrisdale Capital emphasized that while MicroStrategy’s stock has experienced notable growth, it believes its valuation is disproportionate to the actual value of the company’s Bitcoin holdings. The investment firm disclosed a short position in MicroStrategy stock and the potential to profit if the stock falls. Despite hitting a new all-time high earlier in the week, MicroStrategy did not respond to a request for comment.
According to Kerrisdale Capital, the landscape of investment options related to Bitcoin has evolved significantly. The availability of various financial products, including spot Bitcoin ETFs from major institutions such as BlackRock and Fidelity, has provided investors with alternative ways to gain exposure to Bitcoin. Kerrisdale Capital noted that this accessibility has diminished the uniqueness of MicroStrategy stock as a Bitcoin investment vehicle.
In contrast, MicroStrategy has continued to pursue its Bitcoin accumulation strategy and currently holds approximately 214,250 Bitcoins, equivalent to approximately 1% of the total cryptocurrency supply. Despite these significant Bitcoin holdings, Kerrisdale Capital noted that MicroStrategy’s market capitalization has reached nearly $32 billion, far exceeding the value of its Bitcoin holdings.
Kerrisdale Capital disclosed a long position in BlackRock and Fidelity’s spot Bitcoin ETF, comparing it to MicroStrategy stock, signaling its confidence in this alternative investment vehicle.
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