MicroStrategy shares fell 16% to $397.28 Thursday, following statements from influential investment firm Citron Research that it placed a short position against the company while maintaining a long position in Bitcoin.

The disclosure reveals mounting concerns about the company’s stock being overvalued due to what some perceive as an overly excessive company valuation. Citron Research claimed Bitcoin investing has been “easier than ever,” citing ETFs and stocks available on trading platforms Coinbase and Robinhood.

Citron, which notably backed MicroStrategy in 2020 as “the best way to play Bitcoin,” argued the company’s valuation had become “completely detached” from Bitcoin fundamentals despite the alpha crypto approaching $100,000 following a three-week runup in new all-time highs.

Citron and MicroStrategy did not immediately return Decrypt’s requests for comment.

The decline, which erased roughly $20 billion in market value, marked a dramatic reversal from early trading when the stock hit an intraday record of $543.

Go to Source to See Full Article
Author: Vince Dioquino