MicroStrategy Inc. (NASDAQ:MSTR) has become the epicenter of intense market speculation following a dramatic 23.64% stock decline over the past five sessions, while Bitcoin (CRYPTO: BTC) experienced a 5.52% drop during the same period.
What Happened: Prominent investment analyst Gary Black of The Future Fund LLC raised alarm bells about MicroStrategy’s valuation, arguing that the company’s stock price “makes no sense.” Black’s analysis suggests the stock should be valued at around $105 per share—approximately 75% lower than its current trading price.
“Don’t say I didn’t warn you,” Black wrote.
The company, led by CEO Michael Saylor, currently holds 386,700 Bitcoin, valued at $35.4 billion. With a market capitalization of $81.5 billion, MicroStrategy continues to trade at roughly 2.3 times the current value of its Bitcoin holdings.
The Kobeissi Letter highlighted unprecedented retail investor activity, noting that on a single Wednesday last week, retail investors purchased approximately $42 million …
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