MicroStrategy Inc.'s stock surged 615% this year, pushing its market cap over $32 billion, largely due to its significant Bitcoin investments.

Kerrisdale Capital advised investors to short MicroStrategy's stock while going long on Bitcoin, leading to an 11% drop in the company's shares.

Kerrisdale criticized MicroStrategy for its heavy dependence on Bitcoin, which now represents 97% of its value, overshadowing its original enterprise software business.

Shares of MicroStrategy are increasingly viewed as a proxy for Bitcoin, a perspective that may deter some investors.

The Motley Fool excluded MicroStrategy from its list of the top 10 stock picks, raising questions about the company's investment appeal.

The emergence of spot Bitcoin ETFs has diminished the attractiveness of MicroStrategy as an indirect Bitcoin investment option.

MicroStrategy's approach of acquiring more Bitcoin through debt, particularly at peak prices, is seen as a high-stakes move, considering the small proportion of revenue from its core software business.