10x Research: MicroStrategy shares are 60% overvalued

According to ChainCatcher news, 10x Research published an article on the X platform stating that MicroStrategy's stock price is overvalued by 60%. Based on its actual situation, the stock price is even overvalued by nearly 100%. A year ago, MicroStrategy shares were trading at a premium to Bitcoin, and the stock has become the poster child for this Bitcoin bull run, while Grayscale GBTC’s discounted price is the poster child for the 2022 bear market. Realistically, the stock should be trading closer to $1,000 rather than in the $1,700 to $2,000 range.

According to previous news, investment firm Kerrisdale Capital believes that MicroStrategy’s stock price is overvalued. The firm holds a short position in MicroStrategy stock and a long position in BTC via BlackRock and Fidelity’s spot Bitcoin ETF.

Kerrisdale Capital said in the report: "We are long Bitcoin and short shares of MicroStrategy, a proxy for Bitcoin that trades at an unreasonable premium to the digital assets driving its value. With the recent rise in Bitcoin prices , MicroStrategy shares soared, but as is often the case in the cryptocurrency space, things got carried away.”