Bitcoin

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/investment-firm-questions-the-value-of-microstrategy-shares-for-bitcoin-investment">Investment Firm Questions the Value of MicroStrategy Shares for Bitcoin Investment</a><br></p>
<p style="text-align: justify"> In a dynamic <a href="https://en.bitcoinhaber.net/reddit-dives-into-cryptocurrency-investments-with-bitcoin-and-ethereum-purchases">cryptocurrency</a> market, Kerrisdale Capital has issued a compelling analysis suggesting that MicroStrategy’s role as an indirect investment vehicle for <a href="https://en.bitcoinhaber.net/bitcoin-experiences-price-dip-as-market-reacts-to-overheated-conditions">Bitcoin</a> may be diminishing due to the emergence of direct Bitcoin exchange-traded funds (ETFs). Disagreeing with this sentiment, Michael Saylor, Chairman of MicroStrategy, maintains that his company continues to offer a superior option for long-term Bitcoin investors. </p> 
<h2 id="investor-s-skepticism-over-microstrategy-s-share-value">Investor’s Skepticism Over MicroStrategy’s Share Value</h2> 
<p style="text-align: justify"> Kerrisdale Capital, in a recent report, cautions that MicroStrategy’s stock might be significantly overpriced. The firm openly carries a short position on MicroStrategy’s shares, arguing that they trade at an excessive premium compared to the actual value of Bitcoin, the primary driver of the company’s market valuation. At present, MicroStrategy’s stock price stands at $1,704, marking a staggering growth of over 400% in the past six months. Meanwhile, Bitcoin itself has seen a substantial rise, now valued at $70,849, which reflects a six-month increase of over 160%. </p> 
<h2 id="saylor-defends-his-company-s-strategy">Saylor Defends His Company’s Strategy</h2> 
<p style="text-align: justify"> Despite Kerrisdale’s criticisms, Saylor is confident in the continued relevance of MicroStrategy for Bitcoin engagement. Bloomberg TV featured Saylor highlighting the benefits of his company over ETFs, including leveraged exposure to Bitcoin without associated fees. Furthermore, MicroStrategy is pivoting towards branding itself as a Bitcoin development firm, a move Saylor describes as natural given their status as the largest public corporate holder of Bitcoin. </p> 
<p style="text-align: justify"> The strategy seems to be paying off, as evidenced by MicroStrategy’s holdings that have swelled to 214,246 Bitcoins, a 54% increase from the previous year. Saylor underscores the company’s advantages in managing capital and operations, promising to leverage these for shareholder benefit, Bitcoin accumulation, and the overall growth of the Bitcoin network. </p> 
<p style="text-align: justify"> Nevertheless, Kerrisdale’s report points out potential concerns, highlighting MicroStrategy’s climbing debt-to-asset ratio and its underwhelming software analytics business cash flow in 2023, which stood at just $10 million, a mere 3% of the company’s total value.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/investment-firm-questions-the-value-of-microstrategy-shares-for-bitcoin-investment">Investment Firm Questions the Value of MicroStrategy Shares for Bitcoin Investment</a></h5>

Investment Firm Questions the Value of MicroStrategy Shares for Bitcoin Investment

Table of Contents

BH NEWS

Other articles published on Mar 29, 2024

Satoshi Impersonator Craig Wright Faces $7.6 Million Asset Freeze

BEFE Coin’s Spectacular 45% Surge Sends Shockwaves Across Crypto Market

Taiwan’s Crypto Industry Takes a Leap Forward with Government-Backed Association Formation

Optimism Grows for MATIC Coin as Active Addresses Increase

New Development in the Fate of Kucoin: A Member of the CFTC Speaks Out

ClayBro Gives Update About This Crypto with 10x-20x Potential Gains at Launch – Why He is Bullish...

Join our free newsletter for daily crypto updates!