MicroStrategy, a company recognized for its substantial investments in Bitcoin, saw a significant decline in its stock price by 16.2% on Thursday, despite Bitcoin approaching a historic high close to $100,000. At one point, the stock was down over 20%. However, the long-term trend shows shares remaining significantly higher than previous years, particularly over five times for the year 2024 and nearly eight times from the previous year.

"MicroStrategy's [valuation] has completely detached from bitcoin fundamentals," wrote Andrew Left from Citron Research.

(Translation: MicroStrategy's valuation has become disconnected from the fundamentals of Bitcoin.)

Previously, their market cap exceeded $100 million, valuing it more than three times its Bitcoin reserves. After the recent price drop, it has decreased to around $80 million.

"MicroStrategy has officially met my criteria for a textbook parabolic short," said Bracco, an analyst known for their market insights.

(Translation: MicroStrategy's stock has shown traits of a classic short-selling opportunity.)

In another note, Jonathan Weil from WSJ emphasized how the company benefits from its high valuation to acquire Bitcoin, thereby increasing stock prices.

"If you want to speculate that bitcoin is heading higher, buy some. To invest in MicroStrategy’s stock is to bet on the market’s irrationality."

(Translation: Investing directly in Bitcoin may be a more straightforward approach than betting on the stock.)

For further insights, read more about MicroStrategy's adjustments and market analyses.