Kerrisdale Capital: MicroStrategy’s unique way to access Bitcoin ‘long over’

Investment firm Kerrisdale Capital has called MicroStrategy’s shares ‘overvalued.’

Experts in the latest report claim that MicroStrategy shares have soared on the back of the recent rise in Bitcoin (BTC) prices, but as is often the case with cryptocurrencies, “things have gotten carried away.”

“We are long bitcoin and short shares of MicroStrategy, a proxy for Bitcoin which trades at an unjustifiable premium to the digital asset that drives its value.”

Kerrisdale Capital experts

Part of Kerrisdale Capital’s argument for MicroStrategy shares centered on increasing investor access to financial instruments that act as proxy investments for Bitcoin. Experts noted that the days when MicroStrategy shares represented a rare and unique way to get exposure to Bitcoin “are long over.”

“Bitcoin is now easily obtainable through brokerages, crypto exchanges, and more recently low fee ETPs and ETFs.”

Kerrisdale Capital experts

Meanwhile, MicroStrategy continues to pursue its Bitcoin accumulation strategy. The company recently announced that it has about 214,250 Bitcoins, about 1% of the total cryptocurrency supply. The company used profits from previously placed convertible bonds maturing in 2031 to purchase the first cryptocurrency.

In addition, against the background of the recovery of the BTC price above $70,000, MicroStrategy’s market capitalization reached a new high, surpassing the level of $31.85 billion. According to the Companies Market Cap, MicroStrategy now ranks 606 among the largest companies in the world by market capitalization. 

The American software company, one of the world’s largest public holders of Bitcoin, has also seen its share price increase 200% since the beginning of the year.