The statements made by investment firm Kerrisdale Capital led to a decrease in MicroStrategy’s shares.
The Bitcoin-focused investment company MicroStrategy was shaken by the statements of Kerrisdale Capital. In a statement made by Kerrisdale Capital on Thursday, March 28th, it was stated that MicroStrategy is no longer one of the critical companies exposed to Bitcoin and that spot Bitcoin ETFs offer a good alternative to many investors.
Moreover, it was stated that MicroStrategy has a price for Bitcoin that is 2.5 times higher than the normal market value for Bitcoin and that the $177,000 valuation is unacceptable.
Kerrisdale Capital said that “things have gone off the rails” for MicroStrategy and emphasized that they have taken a short position in MicroStrategy shares in relation to long positions in Bitcoin:
The days when MicroStrategy shares represented a rare and unique way to access Bitcoin are long gone. MicroStrategy shares rose in the midst of the recent rise in Bitcoin price, but as is often the case with crypto, things went off the rails. None of the reasons cited for the relative attractiveness of the stock justifies “paying more than twice as much for the same coin.”
Following the statements by Kerrisdale Capital, MSTR shares closed on March 28th with an 11% decrease. MSTR is currently trading at $1,704.
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