After MicroStrategy Buys Another $615 Million Bitcoin, Analyst Says Its Stock Is 26% Overvalued

Updated: 28 December 2023

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Bitcoin bull MicroStrategy has bought another $615 million of BTC, but 10x Research says its stock price is now 25% overvalued and at imminent risk of a steep correction.

Analysts led by Markus Thielen, who earlier predicted that Bitcoin would rally this year, based their analysis on a regression model that studies the relationship between MicroStrategy’s share price and BTC’s spot price.

“The regression model shows MicroStrategy is +26% overvalued and has a 20% downside based on the current Bitcoin prices,” he said. “It is time to take profit.”

MicroStrategy’s Share Price Reaches 25-Month High

MSTR has surged 374% this year and reached a 25-month high of $673 on Dec. 27 to become one of the best performing crypto-related stocks for 2023.

MicroStrategy’s accumulation of BTC started three years ago. Since then, the asset manager has acquired 189,150 BTC worth about $5.9 billion.

The Nasdaq-listed firm’s decision to scoop up BTC has paid off, as the leading crypto is up around 160% year-to-date. This was after it managed to print a 60% gain during this quarter alone.

10x Research also believes that multiple crypto-related stocks are trading close to fair value based on bitcoin’s price.

“We suggest taking profit and cutting long positions,” it said. “HIVE, HUT, and GALAXY still offer some value here, but the BIG money has been made in those stocks.” 10x said.

MicroStrategy has acquired an additional 14,620 BTC for ~$615.7 million at an average price of $42,110 per #bitcoin. As of 12/26/23, @MicroStrategy now hodls 189,150 $BTC acquired for ~$5.9 billion at an average price of $31,168 per bitcoin. $MSTR https://t.co/PKfYY59sTW

— Michael Saylor⚡️ (@saylor) December 27, 2023

MicroStrategy continues to buy BTC. In an X post on Dec. 27, the company’s founder and chairman, Michael Saylor, revealed that MicroStrategy purchased another 14,620 BTC worth $615.7 million. The BTC were acquired at an average price of $42,100 per bitcoin, he said.