Hedge Fund Kerrisdale Capital Longs BTC, Shorts MicroStrategy Stock

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Kerrisdale Capital is a hedge fund, and it has made public it's reasons for going long on Bitcoin, and going short on MicroStrategy stock. The main reason it pointed out is that MicroStrategy has been recently showing some similarities to BTC rise in price - but what determines it's value is different from that of Bitcoin.

The hedge fund said that the current price of MicroStrategy in relations to BTC indicates a BTC price of about $177,000 - which is about 2.5 times the current price of BTC.

A major argument that Kerrisdale Hedge Fund is making is that - the premium of MicroStrategy's stock is too high when you compare it, to it's net asset valuation. And it's about 2.6 times way too high in that comparison.

The conclusion is that, if all things be calculated according to historical statistics - then the present MicroStrategy premium, which is 2.6 times too high - is corrected accordingly to 1.3 times. Then MicroStrategy's stock will experience a 50% fall in price in relation to Bitcoin.