Expert calls MicroStrategy shares overvalued, predicts price correction

On Dec 28, 2023

MicroStrategy shares have risen 320% in 2023, but according to one researcher a slow down could be imminent.

The price of MicroStrategy shares could fall by 20% or more according to experts at 10x Research. In their opinion, the position is overvalued by 26% based on conclusions they gleaned from a regression model that allows one to trace the correlation between MicroStrategy and Bitcoin (BTC).

Stock of Bitcoin’s Biggest Public Holder is Overvalued by 26%, Analyst Who Predicted BTC Rally Says. Early investors in MSTR can consider taking profit as shares appear overvalued and could fall by 20%, according to 10x Research.
https://t.co/fOyBbJGJCL@godbole17 @thielen10x…
— 10x Research (@10x_Research) December 28, 2023

Since the start of 2023, MicroStrategy’s stock price has risen from $141 to $670.71. In the last month alone, MicroStrategy’s stock price has increased by more than 32%. Over the year, the increase was 319.19%, according to TradingView.

Source: TradingView

After purchasing an additional 14,620 BTC in 2023, the company’s unrealized profit reached $2.2 billion. Since the beginning of the year, Bitcoin has risen in price by 160%, reaching multi-month highs. The excitement is primarily associated with the anticipation of the possible approval of spot Bitcoin ETFs and the halving, an event that systematically reduces the supply of Bitcoin available to miners.