Citron Reiterates Short Call on Microstrategy, Expects Continued Decline

Following a year of anticipated decline, Citron Research has reaffirmed its recommendation to short MicroStrategy stock (now Strategy). The firm highlights the company’s 68% stock price drop over the past year as a direct result of this strategy. This timing coincides with a 15% decline in Bitcoin’s value during the same period. Citron acknowledges the strategic choice to remain long Bitcoin while shorting Microstrategy’s stock, which has been met with skepticism from analysts who question the company’s valuation and its reliance on levered Bitcoin exposure.