Shares of bitcoin-backing company MicroStrategy fell 16.2 percent after a prominent short seller said it had “totally diverged” from “the fundamentals of bitcoin.”
MicroStrategy is up more than 500% this year on its approach to buying bitcoin and selling new shares to buy more.
Citron Research on Thursday praised founder Michael Siler for being “visionary” and said that while it remained bullish on Bitcoin, it had hedged it with a short microstrategy position.
Bitcoin has gained nearly a third since Donald Trump won the presidential election two weeks ago, with investors betting he will introduce crypto-friendly laws.
After Thursday’s slide, MicroStrategy is up 64% in that time and has raised $7bn in the sale of bonds and shares to boost its bitcoin holdings.
