Shares of MicroStrategy, which has more than 214 thousand Bitcoins on its balance sheet, fell today. This decline occurred after a report published by the hedge fund Kerrisdale Capital, better known for its short transactions.

Kerrisdale Capital announced in the report that it is long in Bitcoin and short in MicroStrategy shares. The hedge fund argued that MicroStrategy shares are rising largely due to Bitcoin’s rising value, but there is a skewed relationship there.

“Our thesis is not based on a negative view of Bitcoin or MicroStrategy, but on a belief that the relationship between the two has become skewed.” The fund pointed out that the stock is traded at a premium of more than twice its value compared to Bitcoin.

“None of the reasons given for MicroStrategy being attractive justify paying more than twice as much for the same coin,” the report said. MicroStrategy’s trading history and simple logic indicate that the current inflated premium will contract as it did before.” It was said.

Stating that investors can now invest directly in Bitcoin through brokerage firms, exchanges and new spot ETFs, Kerrisdale Capital argues that the premium in MicroStrategy shares is too high. The fund emphasized that although the company has greatly increased the amount of Bitcoin on its balance sheet, the amount of Bitcoin per share has remained almost unchanged in recent years.

Following this report, MicroStrategy shares lost 14 percent of their value today.

It was published:

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