Investment firm Kerrisdale Capital has raised concerns about the valuation of MicroStrategy’s shares. According to experts, the recent surge in Bitcoin prices has led to an overvaluation of MicroStrategy’s shares, which are often influenced by the volatile nature of cryptocurrencies.

Kerrisdale Capital experts have taken a bearish stance on MicroStrategy, considering it a proxy for Bitcoin trading at a premium that is not justified by the digital asset’s value. They argue that investors now have easier access to Bitcoin through various financial instruments, making MicroStrategy shares less attractive as a way to gain exposure to the cryptocurrency.

Despite the criticism from Kerrisdale Capital, MicroStrategy remains committed to its Bitcoin accumulation strategy. The company recently announced that it holds approximately 214,250 Bitcoins, representing about 1% of the total cryptocurrency supply. MicroStrategy used profits from convertible bonds to make this significant investment in Bitcoin.

As the price of Bitcoin surpassed $70,000, MicroStrategy’s market capitalization reached a new high of $31.85 billion, making it one of the largest companies in the world by market capitalization. The American software company, known for its substantial Bitcoin holdings, has seen its share price rise by 200% since the beginning of the year.

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