Investors wondering what’s next for shares in business intelligence firm MicroStrategy following this year’s 343% surge may want to look at what 10x Research, led by Markus Thielen, who predicted this year’s BTC rally, is saying.
According to the most recent research note from 10x, it suggests that MSTR’s shares are potentially overvalued by 26%. This assessment is derived from the firm’s regression model, which analyzes the correlation between the dependent variable (MSTR) and the independent variable (BTC’s spot price).
“As the regression model shows, MicroStrategy is +26% overvalued and has a 20% downside based on the current Bitcoin prices. It is time to take profit,” 10x said.
The shares of MSTR, a company holding Bitcoin, have experienced a remarkable surge, more than quadrupling in value this year. On Wednesday, they reached a 25-month high at $673, solidifying MSTR as one of the top-performing crypto-related stocks in 2023. Currently listed on Nasdaq, the company holds an impressive 189,150 BTC, accumulated over the past three years as part of its strategy to maintain cryptocurrency as a reserve asset. business intelligence firm MicroStrategy
In tandem with MSTR’s success, Bitcoin, the leading cryptocurrency in terms of market value, has seen a remarkable 160% increase in value this year, with a notable 60% surge in the current quarter. This upward trend is largely attributed to the prevailing narrative surrounding spot ETFs.
The performance of crypto-related stocks, exemplified by MSTR and shares in Coinbase, is frequently cited as a gauge for institutional interest in digital assets. These listed instruments offer market participants a means to gain exposure to digital assets without the need to directly own them.