📉Kerrisdale Capital believes that MicroStrategy's shares are overvalued. “We buy Bitcoin and sell shares of MicroStrategy, a proxy for Bitcoin that trades at an unacceptably high price relative to the digital asset it offers value,” they said.

📊MicroStrategy shares fell 14% on Thursday after the news was announced.

💰Kerrisdale believes that the unacceptably high price of MicroStrategy stock will decline, creating an opportunity for trading the pair.

🔍The firm's analysis is not based on a pessimistic view of Bitcoin or MicroStrategy individually but rather on the distorted relationship between them.

📈MicroStrategy trades at a premium of 2.6 times that of Bitcoin, surpassing the historical average of 1.3 times. Kerrisdale points out that this price premium has only been exceeded twice in 6% of trading days since 2021, suggesting overvaluation.

🚀CEO Michael Saylor remains confident that MicroStrategy will continue to be attractive to investors, emphasizing the company's unique characteristics for Bitcoin optimists. He also announced the renaming of MicroStrategy to "Bitcoin Development Company", with 214,246 BTC currently, a 54% increase over the previous year.