MicroStrategy Experiences 14% Drop as Firm Claims Unjustifiable Premium over Bitcoin

By: Isha Das

MicroStrategy's share price, which implied a Bitcoin value of $177K, a whopping 2.5 times the spot price of the cryptocurrency, has led to a significant slump in the company's stock. Kerrisdale investment firm argues that the software company's stock will face further devaluation as its current price seems unjustified.

MicroStrategy has been under the limelight for its aggressive Bitcoin acquisition strategy, which seems to have presented an unjustifiable premium over the actual Bitcoin's spot price. This premium has received criticism, contributing to a 14% decrease in the company's stock.

Investors are posed with the quandary of whether to invest in Bitcoin directly or speculate via MicroStrategy's stock, especially considering the company's unjustifiable premium against Bitcoin's spot price.