MSTR - Kerrisdale Capital Is Short MicroStrategy Stock Long Bitcoin: 'Things Have Gotten Carried Away' | Benzinga
Short-selling investment firm Kerrisdale Capital has MicroStrategy Inc (NASDAQ:MSTR) in its crosshairs. The short seller released a bearish report on the stock Thursday and announced a short position as part of a pair trade.
What To Know: MicroStrategy serves as a proxy for Bitcoin (CRYPTO: BTC). The recent boom in crypto markets helped spark a more than 200% rally in MicroStrategy stock since the start of the year. Kerrisdale Capital believes the move higher is overdone.
“We are long bitcoin and short shares of MicroStrategy, a proxy for bitcoin which trades at an unjustifiable premium to the digital asset that drives its value. Shares of MicroStrategy have soared amid a recent rise in the price of bitcoin but, as is often the case with crypto, things have gotten carried away,” the short seller said.
Kerrisdale Capital claims that bitcoin would need to be trading at $177,000 ...