From Nasdaq: 2024-03-28 17:11:00

Short seller Kerrisdale Capital released a scathing report on MicroStrategy, recommending investors short the stock and go long on Bitcoin. MicroStrategy’s share price fell over 11% in response. The company heavily ties its value to Bitcoin, with its original software analytics business now making up only 3% of enterprise value.

MicroStrategy’s stock price now implies a Bitcoin value over $177,000, significantly higher than the spot price. Kerrisdale criticized the company’s heavy reliance on Bitcoin and lack of diversification in its business. MicroStrategy has not responded to the report, which points out the risks of investing in a company so closely linked to a volatile asset like Bitcoin.

The Motley Fool Stock Advisor team did not include MicroStrategy in their list of 10 best stocks for investors to buy now. The service, which has outperformed the S&P 500 since 2002, offers guidance on building a successful portfolio and provides regular updates from analysts. Investors should carefully consider the risks of investing in a company like MicroStrategy, which is closely tied to Bitcoin’s performance.

Read more at Nasdaq: Why MicroStrategy Stock Tanked by 11% on Thursday