Investment firm Kerrisdale Capital suggests that with the approval of several spot Bitcoin exchange-traded funds (ETFs) this year, investors may find little justification in trading MicroStrategy stocks for Bitcoin exposure. While MicroStrategy’s executive chairman, Michael Saylor, may disagree with this perspective, Kerrisdale Capital believes that MicroStrategy's stock price is overvalued, noting its short positions on the stock.

Kerrisdale Capital highlights the significant growth in MicroStrategy's stock price but cautions that this growth might be excessive, particularly considering the company's increasing debt-to-asset ratio and limited cash flow from its core software analytics business.

However, Saylor remains confident in MicroStrategy's attractiveness to investors, emphasizing its unique position as a "Bitcoin development company" and its ongoing accumulation of Bitcoin holdings. Despite MicroStrategy's efforts, Kerrisdale Capital asserts that owning Bitcoin directly provides better value for shareholders compared to holding MicroStrategy stock.

While MicroStrategy has experienced substantial stock growth over the past year, it saw a decline of approximately 11.18% on the day of Kerrisdale Capital's analysis. Cointelegraph reached out to MicroStrategy for comment but received no response.