Market Expert Defends MicroStrategy’s Value, Predicting Growth Amid Market Concerns

MicroStrategy saw its stock drop 16% yesterday in pre-market trading after Bitcoin hit an all-time high of nearly $100,000.

The decline followed comments from Andrew Left, founder of Citron Research, who raised concerns that MicroStrategy’s stock had detached from Bitcoin’s fundamentals. While he remains bullish on Bitcoin, Left shorted MSTR, claiming its valuation was overinflated.

In contrast, Charles Edwards, CEO of Capriole Investments, defended MicroStrategy’s valuation. He argued that if Bitcoin’s cycle mirrors previous ones and Michael Saylor continues aggressively acquiring Bitcoin, the company could see significant growth.

Edwards highlighted the high demand for MicroStrategy’s bonds, noting that it provides a unique vehicle for bond traders seeking Bitcoin exposure.

Edwards also mentioned that if Bitcoin reaches $200,000 and Saylor expands his Bitcoin holdings, MicroStrategy could be fairly priced. However, he acknowledged the risks of such an aggressive strategy. He also cautioned that MicroStrategy’s NAV premium could fluctuate, urging investors to understand the volatility involved.

In conclusion, Edwards believes that with continued Bitcoin accumulation, MicroStrategy’s stock could still perform well, but it depends on Saylor’s ability to raise capital and manage risks effectively.

Despite the initial slump, MicroStrategy closed the day at almost $422 – or a 6% surge in after hours trading.