# Kerrisdale Capital shorts MicroStrategy, calls Bitcoin premium

**Published:** 2026-07-07T20:16:37.743Z  
**Topic:** Microstrategy Bitcoin  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/645f4e85-234e-44c3-9700-7d9acbd1a883

Kerrisdale Capital shorted MicroStrategy at $1,704, saying the stock trades at a 250% premium to its Bitcoin holdings after spot Bitcoin ETFs launched.

Kerrisdale Capital disclosed a short position in MicroStrategy (MSTR) at roughly $1,704 per share, arguing the stock trades at an “unjustifiable premium” to the Bitcoin it holds, now worth about $14.6 billion [1][3].

| At a glance | |
|---|---|
| Stock price | $1,704 |
| 1‑month stock gain | +66.65% |
| 6‑month stock gain | +419% |
| Catalyst | Spot Bitcoin ETF approvals (Jan) |

## Why Kerrisdale sees a premium

Kerrisdale’s March note points to the launch of multiple spot Bitcoin exchange‑traded funds in January as the primary reason investors no longer need MicroStrategy as a proxy for Bitcoin exposure [1]. The firm says the company’s shares are priced far above the value of its Bitcoin holdings, which represent roughly 1 % of all Bitcoin and are valued at $14.6 billion versus a market cap that exceeds half of the S&P 500 constituents [1][3]. Kerrisdale also highlights MicroStrategy’s deteriorating balance sheet: a debt‑to‑asset ratio that has risen sharply and cash of only $10 million in 2023, which is just 3 % of the firm’s enterprise value [3].

## Market context

MicroStrategy’s share price has surged 66.65 % over the past month and 419 % over the last six months, outpacing Bitcoin’s 15.8 % monthly and 163 % six‑month gains in the same periods [3]. The disparity underscores Kerrisdale’s claim that the stock’s rally is “carried away” by Bitcoin’s rebound rather than fundamentals. Analyst Sahm Adrangi of Kerrisdale notes that the stock’s implied Bitcoin price is about 2.5 times the actual market price, suggesting the premium is not justified by the underlying asset [2].

## On‑chain and valuation details

MicroStrategy holds 214,246 BTC, a figure that reflects a 54 % increase from its earlier holdings of 138,955 BTC [3]. The firm’s Bitcoin position, acquired through multiple purchases—including an 11,931 BTC buy for $786 million on June 20—accounts for the bulk of its market value, while its software business is estimated at $1‑1.5 billion, a modest fraction of the total enterprise value [2].

## What to watch
- **MSTR price**: $1,600 resistance and $1,500 support levels could signal a shift in the premium narrative.  
- **Bitcoin ETF activity**: Any new ETF filings or regulatory updates may further reduce the need for a corporate proxy.  
- **On‑chain flows**: Large‑wallet Bitcoin movements out of MicroStrategy’s addresses could affect the perceived value gap.

Kerrisdale’s short thesis hinges on the expectation that as spot Bitcoin ETFs mature, the premium embedded in MicroStrategy’s stock will compress, forcing a price correction that aligns more closely with the underlying Bitcoin holdings. The open question is whether the company’s broader business and debt profile will sustain its valuation if the premium erodes.

## Sources
1. TheStreet — [Investment firm goes short on MicroStrategy, calling bitcoin premium 'unjustifiable'](https://www.thestreet.com/crypto/markets/investment-firm-short-on-microstrategy-calling-bitcoin-premium-unjustifiable)
2. Tradingview — [Why are traders shorting Michael Saylor’s MicroStrategy?](https://www.tradingview.com/news/cointelegraph:e8a6186f1094b:0-why-are-traders-shorting-michael-saylor-s-microstrategy/)
3. Tradingview — [MicroStrategy is trading at an ‘unjustifiable premium’ to Bitcoin: Analyst](https://www.tradingview.com/news/cointelegraph:141e98b2b094b:0-microstrategy-is-trading-at-an-unjustifiable-premium-to-bitcoin-analyst/)

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Cite as: TrendWatcher, "Kerrisdale Capital shorts MicroStrategy, calls Bitcoin premium", https://www.trendwatcher.in/article/645f4e85-234e-44c3-9700-7d9acbd1a883