MicroStrategy (NASDAQ:MSTR) stock is on the move Thursday as investors react to a new short report from Kerrisdale Capital targeting the data analytics and Bitcoin (BTC-USD) holding company.
Kerrisdale Capital takes issue with the value of investing in MicroStrategy as compared to purchasing Bitcoin outright. The firm argues that this has caused the company to be overvalued, with BTC making up most of its value compared to its software services.
Its main complaint is the company’s BTC holdings valued at $177,000 per token. That’s more than twice the current price of simply purchasing Bitcoin itself.
Kerrisdale Capital even argues that MicroStrategy isn’t worth investing in as a BTC holding when compared to its rivals. The firm notes that there are plenty of other options for indirect investing in Bitcoin that are better for traders, even with extra fees.
Based on these arguments, Kerrisdale Capital believes the price of MSTR stock should be closer to $700 or $800 per share. To put that in perspective, the prior closing price for the company’s shares is $1,919.16.
MSTR Stock Movement Today
Even with this short report, shares of MSTR stock have largely been unmoved this morning. That comes as roughly 600,000 shares change hands. For the record, its daily average trading volume is about 2.2 million shares.
There are more stock market stories traders are going to want to read about below!
We have all of the hottest stock market stories traders need to know about on Thursday! Among that is what has shares of GCT Semiconductor (NYSE:GCTS), Urban-Gro (NASDAQ:UGRO) and other stocks moving this morning. All of that news is available at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
