What is the reason behind traders betting against MicroStrategy led by Michael Saylor

Investment firm Kerrisdale Capital is taking a short position on MicroStrategy stock, claiming that it is trading at an unjustifiable premium to Bitcoin. According to Sahm Adrangi, the chief investment officer at Kerrisdale Capital, the fact that MicroStrategy owns a certain amount of Bitcoin does not justify its high price. Adrangi believes that the company’s software business is worth much less than the value implied by the price of its stock. MicroStrategy has been buying Bitcoin since 2020 under the leadership of its executive chairman, Michael Saylor. The company now holds a significant amount of Bitcoin, but Adrangi argues that this does not increase the value of the company. Kerrisdale Capital, known for publishing research and shorting stock, has also expressed skepticism about Bitcoin mining companies. Despite criticism from the crypto community, Adrangi remains confident in Kerrisdale’s research. However, a research analyst at Bitcoin financial services firm Onramp has criticized Kerrisdale’s proposition, suggesting that the value of MicroStrategy’s stock could increase even further. Adrangi clarified that he does not view Bitcoin as a wise investment and considers it to be a get-rich-quick scheme.