Key Points
- Kerrisdale Capital has criticized MicroStrategy’s shares as being overvalued due to the recent rise in Bitcoin prices.
- MicroStrategy continues to accumulate Bitcoin and its market capitalization has reached a new high, exceeding $31.85 billion.
Kerrisdale Capital, an investment firm, has expressed concerns about the overvaluation of MicroStrategy’s shares.
The firm’s experts have linked this to the recent surge in the price of Bitcoin (BTC).
The Role of Bitcoin
Kerrisdale Capital’s experts have claimed that MicroStrategy’s shares are trading at a premium that is not justified by the digital asset that drives its value.
They argue that the shares used to be a unique way to gain exposure to Bitcoin, but this is no longer the case.
With the rise of brokerages, crypto exchanges, and low fee ETPs and ETFs, Bitcoin is now easily accessible to investors.
MicroStrategy’s Strategy and Performance
Despite this criticism, MicroStrategy continues to accumulate Bitcoin.
The company recently announced that it holds approximately 214,250 Bitcoins, which is about 1% of the total cryptocurrency supply.
These Bitcoins were purchased using profits from previously placed convertible bonds that are due to mature in 2031.
Following the recovery of the BTC price above $70,000, MicroStrategy’s market capitalization reached a new high, surpassing $31.85 billion.
According to Companies Market Cap, MicroStrategy is now ranked 606th among the largest companies in the world by market capitalization.
The American software company, which is one of the largest public holders of Bitcoin in the world, has also seen a 200% increase in its share price since the start of the year.
