Cryptocurrency derivatives exchange BitMEX stated yesterday (21) that while MicroStrategy's stock price is supported by its holding of over 330,000 BTC, its current stock price of over $470 still has a huge premium compared to Bitcoin, which is a very unhealthy Ponzi model. Meanwhile, the famous short-seller Citron Research also announced that it has begun shorting MSTR. (Background: Is it better to buy Bitcoin or invest in MicroStrategy? Three reasons tell you how MSTR topped NASDAQ in trading volume) (Supplementary background: MicroStrategy's stock surged 10% to become the champion of US stock trading volume! It also announced a $2.6 billion bond issuance to increase its Bitcoin holdings) Benefiting from the continuous rise in Bitcoin prices, MicroStrategy, the dominant player in Bitcoin holdings, has seen its stock price (MSTR) soar significantly this year, even outperforming Bitcoin. Wall Street's major short-seller Citron Research: has shorted MSTR Just as MSTR's stock price continues to soar, the well-known short-selling agency Citron Research posted on X last night stating that while they are optimistic about Bitcoin, MicroStrategy's stock price has completely detached from its fundamental development, so they chose to short MSTR: Nowadays, investing in Bitcoin has become easier than before, we have spot ETFs, Coinbase exchanges, and Robinhood. But MicroStrategy's stock MSTR has completely detached from the fundamentals of Bitcoin, and although we hold an optimistic view on Bitcoin, we have adopted a hedging strategy of shorting MSTR. How did this one age? Nearly 4 years ago to the date, Citron was the first to tell readers that MicroStrategy was the ultimate way to invest in Bitcoin, setting a $700 target. Fast forward to today: $MSTR has skyrocketed to over $5,000 (adjusted). Kudos to Michael Saylor for… — Citron Research (@CitronResearch) November 21, 2024 BitMEX: MicroStrategy's stock price has a serious premium Coincidentally, cryptocurrency derivatives exchange BitMEX also posted on social platform X yesterday (21), stating that while MicroStrategy's stock price is supported by its holding of over 330,000 BTC, its current stock price of over $470 still has a huge premium compared to Bitcoin, which is very unhealthy: MicroStrategy's current market value is approaching $100 billion, and compared to the total value of its Bitcoin holdings, the premium is as high as 256%. Such a premium is unbelievable, possibly due to some financial institutions being unable to invest in Bitcoin spot ETFs or physical Bitcoin in compliance, leading investors to prefer buying MicroStrategy stock to gain Bitcoin exposure, despite the high premium. Additionally, as MicroStrategy's stock continues to trade at a premium, it can continuously issue new shares to buy more Bitcoin, which would be a frightening Ponzi model: MicroStrategy's current premium is at 256%. If calculated at this premium, when each share of MSTR actually represents $474 worth of Bitcoin holdings (which is obviously not the case currently), MicroStrategy would need to issue 157 million shares to raise $157 billion and hold 1.9 million BTC, with the stock price needing to rise to $1,685. Furthermore, when the stock price rises to $1,685, people might still believe that this premium will continue to hold, which is unreasonable, as this is a typical Ponzi scheme model. MicroStrategy’s Premium – We did the Ponzi Maths! $MSTR has a market capitalisation of over $100 billion and trades at a giant premium to the value of its Bitcoin holdings, around 256% on a fully diluted basis. This premium is insane, perhaps in part driven by some financial… pic.twitter.com/KvlfhFcKvi — BitMEX Research (@BitMEXResearch) November 21, 2024 MicroStrategy's stock price once fell 20% Amid negative news, MicroStrategy's stock price dropped over 20% yesterday but rebounded after the close, ending at $397.28, with a market value dropping to $80.5 billion. Related reports Michael Saylor initiated a vote for BTC to break $100,000 by the end of the year: over 85% agreed, hinting that MicroStrategy will increase its holdings again. MicroStrategy's Michael Saylor in conversation with Bonnie: After studying Bitcoin for ten thousand hours, you will understand that high volatility is not high risk. Both longs and shorts suffered) Bitcoin surged past $92,500 and then plummeted, MicroStrategy invested another $4.6 billion to increase its holdings by 51,000 BTC. "Major short-seller Citron 'shorting MicroStrategy' stock price plummeted by 20%: MSTR has completely detached from the fundamentals of Bitcoin" This article was first published on BlockTempo (the most influential blockchain news media).

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