Bitcoin

Impact

BlackRock

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Kerrisdale Capital claims MicroStrategy’s shares are overpriced due to an ‘unjustifiable premium’ to bitcoin.</li>
 <li>The investment firm argues that the availability of financial instruments like ETFs has changed the investment landscape.</li>
</ul>
<p>Investment firm Kerrisdale Capital has stated that MicroStrategy’s shares are overvalued.</p>
<p>The firm is long on <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/" rel="noopener noreferrer nofollow">bitcoin</a> but short on MicroStrategy, which it views as a proxy for bitcoin trading at an unwarranted premium.</p>
<h2 id="microstrategy-s-stock-surge">MicroStrategy’s Stock Surge</h2>
<p>MicroStrategy’s shares have skyrocketed due to the recent rise in bitcoin’s price.</p>
<p>Kerrisdale Capital has short positions in MicroStrategy’s stock and stands to benefit if its value decreases.</p>
<p>MicroStrategy’s shares recently reached a new all-time high, surpassing $1,900.</p>
<h2 id="impact-of-etfs">Impact of ETFs</h2>
<p>Kerrisdale Capital’s argument hinges on the increased availability of financial instruments that act as proxy investments for bitcoin.</p>
<p>The firm contends that MicroStrategy’s shares are no longer a unique way to access bitcoin.</p>
<p>Bitcoin can now be easily accessed through brokerages, crypto exchanges, and low fee ETPs and ETFs.</p>
<p>In January, several spot bitcoin ETFs began trading and quickly attracted billions of dollars in fresh capital.</p>
<p>These ETFs are offered by traditional financial institutions like BlackRock and Fidelity and have registered over $150 billion in cumulative trading volume.</p>
<p>Meanwhile, MicroStrategy has continued its strategy of accumulating bitcoin, currently holding approximately 214,250 bitcoin, around 1% of the cryptocurrency’s total supply.</p>
<p>Before MicroStrategy started buying bitcoin, its market capitalization was just over $1 billion.</p>
<p>Now, its market cap is nearly $32 billion, despite its bitcoin holdings being worth only $15 billion.</p>
<p>Kerrisdale Capital, which is short on MicroStrategy and long on bitcoin, also holds long positions in both BlackRock and Fidelity’s spot bitcoin ETFs.</p>

MicroStrategy’s ‘Unreasonable Premium’ on Bitcoin Draws Short-seller Criticism

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