MicroStrategy's stock dives 20% after short-seller says 'volume has completely detached from BTC fundamentals'
Quick Take Citron Research cheered Michael Saylor’s vision for selling debt to fund bitcoin purchases ut noted the stock’s massive runup has been overheated.
Shares of MicroStrategy (ticker MSTR) plummeted more than 20% in Thursday's trading session after a research firm noted it was shorting the stock.
Citron Research, led by investor Andrew Left, cheered MicroStrategy Executive Chairman Michael Saylor's vision for selling debt to fund the company's bitcoin purchases since 2020 but noted that the stock's massive runup has been overheated.
"How did this one age? Nearly 4 years ago to the date, Citron was the first to tell readers that MicroStrategy was the ultimate way to invest in Bitcoin, setting a $700 target," Citron said in a post on X . "Fast forward to today: $MSTR has skyrocketed to over $5,000 (adjusted). Kudos to Michael Saylor for his visionary Bitcoin strategy."
MicroStrategy's stock is up nearly 500% this year, outpacing the price of bitcoin (+110%) and the SP 500 (+25%), according to Yahoo Finance. On Wednesday alone, MSTR surpassed the SPDR SP 500 ETF Trust (SPY) and Tesla (TSLA) to become the most-traded stock of the day in terms of dollar value. The company is currently trading at about 3x of its net asset value.
Citron noted that investing in bitcoin is much easier today than it was five years ago, with the addition of spot Bitcoin ETFs as well as crypto-related equities like Coinbase and Robinhood.
"$MSTR’s volume has completely detached from BTC fundamentals," the post said. "While Citron remains bullish on Bitcoin, we’ve hedged with a short $MSTR position. Much respect to @saylor, but even he must know $MSTR is overheated."
The Block reached out to MicroStrategy for comment but has not heard back from them at the time of writing.
On Monday, MicroStrategy completed its largest-ever bitcoin purchase, buying 51,780 BTC for approximately $4.6 billion. It now holds roughly $29.7 billion worth of bitcoin, purchased for a total cost of around $16.5 billion, including fees and expenses. The company has a market cap of $80 billion.
MSTR closed down 16.6% to $397.28. Bitcoin traded around $98,200, according to The Block's price page .
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Solana News Today: Sharps Pivots to Solana Treasury, Mirroring MicroStrategy's Bitcoin Bet
- Sharps Technology raised $400M via private placement, aiming to become a top Solana (SOL) institutional holder with potential $1B total funding. - The firm secured a 15% discount on $50M SOL from Solana Foundation and hired advisor James Zhang to scale its treasury strategy. - Proceeds will prioritize SOL acquisitions while shares surged 50% post-announcement, driven by institutional confidence and insider purchases. - The move mirrors MicroStrategy's Bitcoin strategy, positioning Sharps as a public vehi
Emerging Blockchain Economies: Analyzing GDP-like Metrics for Bitcoin, Ethereum, and Solana
- U.S. government publishes GDP data on Ethereum and Solana, elevating them as economic infrastructure over Bitcoin. - Ethereum's $300B GDP-like metrics (TVL, fees) and Solana's 65,000 TPS position them as programmable finance engines. - Bitcoin's 7 TPS and lack of on-chain programmability limit its role to macro hedge vs. Ethereum/Solana's broader utility. - Ethereum 2.0 upgrades and Solana's PoH consensus drive scalability, attracting $72B in institutional crypto assets.
Ethereum Contract Boom Signals Potential Price Surge to New Highs
JPMorgan says: Bitcoin is still too "cheap"
This Wall Street giant has clearly stated that bitcoin is significantly undervalued compared to gold.
Trending news
MoreCrypto prices
More
