Kerrisdale Capital’s current short selling of MicroStrategy is mainly based on their belief that the company’s stock price is severely overvalued and has an excessively high premium compared to the actual value of the Bitcoin it holds.
background:
After becoming a large holder of Bitcoin, MicroStrategy's stock price has been highly correlated with the price of Bitcoin. However, there have been many cases where the stock price premium is higher than the value of Bitcoin holdings.
Kerrisdale Capital specifically pointed out that MicroStrategy's stock price is about 2.5 to 2.6 times higher than the actual value of the Bitcoin it holds. In this case, they believe that the stock price lacks a rational basis. Therefore, they chose to short MicroStrategy and go long Bitcoin at the same time, hoping to profit from the price reversion of both in this way.
Current situation:
Recently, Kerrisdale Capital's criticism caused MicroStrategy's stock price to fall by about 11%.
Kerrisdale believes that MicroStrategy does not provide a unique way to access Bitcoin compared to low-fee exchange-traded products such as BlackRock’s IBIT and Fidelity’s FBTC, so its premium is not justified.
Currently, the market is cautious about this premium and there is considerable short selling pressure trying to narrow this spread.
Summarize:
Investors have different views on MicroStrategy. Some believe that MicroStrategy's Bitcoin holding strategy can bring long-term benefits, while others, like Kerrisdale Capital, believe that this strategy has led to unreasonable market valuations. At this time, it is easy to produce group emotions that have appeared several times in history to defend and push down certain stocks and coins.
Combined with the current BTC price riot, it went from 61,000 to 66,000 in one day, and even#okx The current account investment also soared to 43% annualized (caused by short-term lending fluctuations)
I think everyone should pay close attention to this matter in the short term.
This article is not sponsored by anyone, please provide advertising space