Microstrategy Shares Look Overvalued By 26%: 'It Is Time To Take Profit' Says Analyst Who Saw Bitcoin Rally

While MicroStrategy Inc. MSTR attracted the attention of analysts who raised price targets for the stock, one stated the stock was overvalued.

What Happened: MicroStrategy reported a surge of 358.8% on a year-to-date basis and investors' optimism is high for the upcoming year amid rising Bitcoin BTC/USD prices that are the highest revenue-generating source for the tech company.

But 10x Research's Markus Thielen, who in February 2023 predicted a Bitcoin rally, saw MicroStrategy shares as overvalued by 26%. The analyst said this was “based on the firm's regression model, studying the relationship between the dependent variable, MSTR, and the independent variable, BTC's spot price,” as reported by CoinDesk.

“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,” the report added.

Thielen estimated Bitcoin prices to reach $45,000 by Christmas in a Matrixport report.

Also Read:  'All I Want For Christmas Is Bitcoin': Canaccord Genuity Raises Price Target For Michael Saylor's Microstrategy After Company Adds $615M Worth Of BTC

Why It Matters:  The 10x report went on to say, “We suggest taking profit and cutting long positions. HIVE, HUT, and GALAXY still offer some value here, but the BIG money has been made in those stocks.”

HIVE Digital Technologies Ltd HIVE, HUT 8 Corp HUT, and Galaxy Digital Holdings Ltd BRPHF reported 267.3%, 1,864.6%, and 201% surge, respectively, on a year-to-date basis.

These crypto-related stocks have a positive correlation with Bitcoin prices. These are commonly observed as a substitute for institutional interest in digital assets. The listed crypto tokens enable market participants to have exposure to them without owning them.

After its recent purchase of Bitcoin, MicroStrategy now owns 189,150 Bitcoin worth $5.9 billion at an average price of $31,168 per Bitcoin.

Notably, popular Bitcoin analyst, Max Keiser took to his X handle and stated, “$MSTR is prepping a $5 billion mixed debt & equity shelf offering. Another 100,000 #Bitcoin buy?”

SOURCE: $MSTR is prepping a $5 billion mixed debt & equity shelf offering.

Another 100,000 #Bitcoin buy? pic.twitter.com/pGUmgdRc5I

— Max Keiser (@maxkeiser) December 27, 2023

Read Next: Michael Saylor's MicroStrategy Buys $616M Worth Of Bitcoin, Brings Total Holdings To $6B

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