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How MicroStrategy’s Bitcoin strategy paid off this bull run

2min Read

How have MicroStrategy shares performed, and what’s the impact on traders betting against the company?

How MicroStrategy's Bitcoin strategy paid off in this bull run

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MicroStrategy, led by Michael Saylor, is making big waves in the stock market.

Renowned for its fervent embrace of Bitcoin [BTC], the company has witnessed an astonishing surge in its shares, with values tripling in the current year alone. 

This meteoric rise coincides with Bitcoin’s relentless climb to new all-time highs.

Remarking on the same, Saylor in a Yahoo Finance interview with Julie Hyman, discussed the company’s ambitious Bitcoin investment strategy, 

“Well, we think Bitcoin is the highest form of property, the apex property in the world, and it’s the best investment asset, so the end game is to acquire more Bitcoin.”

MicroStrategy’s 3-digit shares 

According to a Bloomberg report, MicroStrategy Inc.’s stocks have surged by over threefold this year, benefiting from Bitcoin’s record-breaking rally, causing losses for traders who bet 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, building over a year, has resulted in total losses exceeding $4.3 billion in the past 12 months.

Larry Tentarelli, chief technical strategist, of Blue Chip Daily Trend Report, added, 

“Shorting MicroStrategy is a tough position to take.”

A potential short squeeze 

This move has triggered concerns about a potential short squeeze. However, with MicroStrategy’s high float of over 22%, the possibility of a short squeeze looms large. 

Ihor Dusaniwsky, managing director of predictive analytics at S3, remarked,

“These stocks are both more crowded and much more squeezable than the average US stock.”

Cowen analysts led by Lance Vitanza, added,  

“MicroStrategy shares remain an attractive vehicle for investors looking to gain Bitcoin exposure, in our view.”

Henceforth, MicroStrategy’s firm dedication to Bitcoin, highlighted by its latest plan to sell convertible senior notes for more crypto purchases, solidifies its position as the largest corporate Bitcoin holder.

Thus, with over 205,000 Bitcoins valued at $15 billion in its treasury, MicroStrategy’s unwavering commitment to Bitcoin shines brightly.

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Ishika is a graduate of Political Science from the University of Delhi. From writing content as a hobby to now pursuing it as a professional career, she has been living and breathing content all her life. Her interests lie in making sure articles are very digestible to a common reader, despite all its technicalities and jargons.
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