Microstrategy Shares Look Overvalued By 26%: 'It Is Time To Take Profit' Says Analyst Who Saw Bitcoin Rally
Portfolio Pulse from Khyathi Dalal
MicroStrategy Inc. (NASDAQ:MSTR) is considered overvalued by 26% according to 10x Research's Markus Thielen, who suggests it's time to take profit based on a regression model linking MSTR stock to Bitcoin prices. Thielen predicts Bitcoin to reach $45,000 by Christmas. Other crypto-related stocks like HIVE Digital Technologies Ltd (NASDAQ:HIVE), HUT 8 Corp (NASDAQ:HUT), and Galaxy Digital Holdings Ltd (OTC:BRPHF) also saw significant year-to-date surges. MicroStrategy recently increased its Bitcoin holdings, now owning 189,150 Bitcoin worth $5.9 billion. Max Keiser hinted at a potential $5 billion mixed debt & equity shelf offering by MicroStrategy, possibly to buy more Bitcoin.
December 28, 2023 | 5:46 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
MicroStrategy is seen as overvalued by 26% according to 10x Research, with a potential 20% downside based on current Bitcoin prices.
The stock is considered overvalued based on its correlation with Bitcoin prices, which are a major revenue source for the company. The analyst's prediction of a downside suggests a negative short-term impact on the stock price.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Galaxy Digital Holdings Ltd saw a 201% increase year-to-date and is included in the list of stocks that still offer value.
The positive year-to-date performance and the mention of the stock still offering value suggest a favorable short-term outlook.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
HIVE Digital Technologies Ltd reported a 267.3% surge on a year-to-date basis and is seen as still offering some value.
Despite the high year-to-date surge, the stock is considered to still have value, which could indicate a positive short-term outlook.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
HUT 8 Corp experienced a significant 1,864.6% increase on a year-to-date basis and is mentioned as still having some value.
The substantial year-to-date increase suggests strong performance, and the stock is still seen as valuable, potentially leading to continued positive short-term performance.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70