Kerrisdale Capital Is Short MicroStrategy Stock, Long Bitcoin: 'Things Have Gotten Carried Away'
Portfolio Pulse from Adam Eckert
Kerrisdale Capital has taken a short position on MicroStrategy Inc (MSTR), citing an unjustifiable premium over its bitcoin holdings. Despite being bullish on bitcoin, Kerrisdale argues that MicroStrategy's stock rally, over 200% since the year's start due to the crypto boom, is overextended. They believe MicroStrategy's current valuation implies a bitcoin price of $177,000 to be justified. The firm points out that MicroStrategy's software analytics business represents only 3% of its value, and its bitcoin per share has remained unchanged despite increased holdings.
March 28, 2024 | 2:47 pm
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Kerrisdale Capital's short position and bearish report on MicroStrategy highlight concerns over its valuation relative to bitcoin holdings, suggesting an overextended stock price rally.
Kerrisdale Capital's analysis suggests that MicroStrategy's stock price has surged beyond what its bitcoin holdings justify, indicating a potential overvaluation. Given the firm's influence and the detailed reasoning behind its position, this could lead to increased selling pressure on MSTR in the short term, especially if other investors align with Kerrisdale's perspective.
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