24/7 Cryptocurrency News

MicroStrategy (MSTR) Slumps 9% As Kerrisdale Capital Shorts The Stock

MicroStrategy shares is down by 9% as investment firm Kerrisdale Capital shorts the stock sharing bearish fundamentals
Published by
MicroStrategy (MSTR) Slumps 9% As Kerrisdale Capital Shorts The Stock

Highlights

  • Kerrisdale Capital has announced it will be shorting MicroStrategy stock
  • The firm said MicroStrategy does not deserve the Premium it current trade at
  • The investment firm noted it is long on Bitcoin

MicroStrategy (MSTR) shares have plunged by about 9.07% to $1,735.74, a drop that might be a reaction to the stock short position from investment asset management firm Kerrisdale Capital

Advertisement

Kerrisdale Capital Shorts MicroStrategy, Longs Bitcoin

On Thursday, Kerrisdale Capital revealed its plans to short-sell its MSTR stock and bet long on the leading cryptocurrency by market capitalization Bitcoin (BTC). The short seller acknowledged the recent jump in the price of the MicroStrategy shares as Bitcoin price also surged. However, the firm stated that this “is often the case with crypto, things have gotten carried away.” 

The firm believes that MSTR will not be an exception. Already the price of Bitcoin implied in MSTR shares price is now over $177,000, which is more than two and half times the spot price of the cryptocurrency. Kerrisdale Capital noted that none of the reasons cited for MSTR attractiveness justifies paying more than double for the same coin.

Never were there days when MicroStrategy shares represented a rare, unique way to gain access to Bitcoin, per Kerrisdale Capital report. Bitcoin can easily be obtained from brokerages, crypto exchanges, and more recently fee exchange-traded products (ETPs) and exchange-traded funds (ETFs) like BlackRock’s IBIT and Fidelity’s FBTC

Currently, MicroStrategy’s valuation is made up of 97% Bitcoin, especially after its last acquisition that moved its BTC holding to 214,246 units of the flagship cryptocurrency. While it has $28 billion as its market capitalization, MicroStrategy’s Bitcoin holding is valued at $15.2 billion. 

Advertisement

Short Sellers Position on MSTR Stock Shifts

Noteworthy, Kerrisdale Capital is not the only investor selling short MicroStrategy shares and the latter is not the only stock with short interest. The crypto stock market has a total short interest of $10.7 billion with MicroStrategy and Coinbase (COIN) leading the group by 84% of the bearish bets.

Two weeks ago, MicroStrategy moved positively, sending a signal that it could defeat its short sellers, especially seeing the shares have recorded a 155% increase year-to-date. MSTR’s outlook at the time threatened traders’ bets against the company as they were looking at experiencing massive paper losses amidst the stock price surge. 

Even Larry Tentarelli, the Chief Technical Strategist of Blue Chip Daily Trend Report, considered shorting MSTR as a tough decision to make. However, the current market condition does not make it as tough as Tentarelli had stated.

Share
Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

SEC Forms International Task Force to Crack Down on Pump-and-Dump Schemes

The U.S. Securities and Exchange Commission has launched a task force designed to tackle cross-border…

September 6, 2025
  • 24/7 Cryptocurrency News

Justin Sun Pledges $20M Buy Following WLFI Wallet Freeze

Justin Sun Justin Justin Sun responded to World Liberty Financial freezing his wallet by promising…

September 6, 2025
  • 24/7 Cryptocurrency News

Expert Blames ‘Secret Committee’ for Rejecting MSTR Stock Inclusion to S&P 500

Michael Saylor's Strategy (NASDAQ: MSTR) missed the inclusion in the S&P 500 index on Friday,…

September 6, 2025
  • 24/7 Cryptocurrency News

MARA Bitcoin Treasury Nears $6 Billion, Trails Only Strategy in Public Rankings

MARA Holdings, Inc. announced that it now holds $5.9 billion worth of Bitcoin. This cements…

September 6, 2025
  • 24/7 Cryptocurrency News

Senate Banking Committee Releases Updated Draft Crypto Market Structure Bill

The U.S. Senate Banking Committee has released an updated version of the draft Crypto Market…

September 6, 2025
  • 24/7 Cryptocurrency News

Michael Saylor’s Strategy Fails To Make S&P 500 Listing, MSTR Stock Drops

Strategy, led by Executive Chairman Michael Saylor, has been left out of the latest S&P…

September 6, 2025