MicroStrategy, led by Michael Saylor, is making big waves in the stock market.
Known for his fervent embrace of Bitcoin [BTC]the company has witnessed an astonishing rise in its shares, with its value tripling this year alone.
This rapid rise coincides with Bitcoin’s relentless climb to new all-time highs.
Saylor notes the same thing about this in a Interview with Yahoo Finance discussed the company’s ambitious Bitcoin investment strategy with Julie Hyman,
“Well, we think Bitcoin is the highest form of real estate, the top property in the world, and it’s the best investment asset, so the end game is to acquire more Bitcoin.”
MicroStrategy’s 3-digit stock
According to a Bloomberg reportThe shares of MicroStrategy Inc. have more than tripled this year, benefiting from Bitcoin’s record rally, causing losses for traders betting against the company.
Short sellers who bet against MicroStrategy are now facing the consequences of their gamble as the company’s bold move into Bitcoin has turned the tables.
This financial turmoil, which has built up over a year, has resulted in total losses of more than $4.3 billion in the past twelve months.
Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report, added:
“Shorting MicroStrategy is a difficult position.”
A potential short squeeze
This move has raised concerns about a possible short squeeze. However, with MicroStrategy’s high float of over 22%, the possibility of a short squeeze is high.
Ihor Dusaniwsky, director of predictive analytics at S3, commented:
“These stocks are both busier and much more compact than the average U.S. stock.”
Cowen analysts led by Lance Vitanza added:
“MicroStrategy stock remains an attractive vehicle for investors looking to gain Bitcoin exposure in our view.”
Henceforth, MicroStrategy’s strong commitment to Bitcoin is highlighted by its last plan to sell convertible senior notes for more crypto purchases, cementing its position as the largest corporate Bitcoin holder.
So with more than 205,000 Bitcoins worth $15 billion in its coffers, MicroStrategy’s unwavering commitment to Bitcoin shines brightly.
