Kerrisdale Capital recently issued a report claiming that MicroStrategy stock is overvalued, CryptoPotato reported. “We are bullish on Bitcoin but bearish on shares of MicroStrategy, a Bitcoin proxy that trades at an unreasonable premium to the digital assets driving its value,” the company said. Following the disclosure, MicroStrategy’s Shares fell a significant 14% on Thursday. Kerrisdale Capital believes the premium on MicroStrategy shares, which represents two and a half times Bitcoin's current price, is unreasonable, saying Bitcoin would need to trade to $177,000 to justify this. However, Kerrisdale Capital believes the premium on MicroStrategy shares could be reduced, providing opportunities for hedging trades. The company clarified that its analysis is not based on a bearish view on Bitcoin or MicroStrategy individually, but rather on the twisted relationship between them. Despite the increase in Bitcoin holdings, Kerrisdale said the number of Bitcoins per share has remained essentially the same in recent years. MicroStrategy currently holds 214,246 Bitcoins, a 54% increase from last year.