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 <p class="paragraph">In an interesting turn of events, the short interest in MicroStrategy (NASDAQ: MSTR) has reached a massive figure of $3 billion, or 20% of its float, suggesting that the investors doing the short selling are exceptionally bearish on its future price, but also indicating the possibility of a mega short squeeze.</p>
 <p class="paragraph">Indeed, despite a recent rally for Bitcoin (BTC), to which MicroStrategy grants indirect exposure, some investors are betting a lot of money against MSTR, with the short bets accounting for about 20% of the company’s total available shares, as observed by Andrew Kang in an X post on March 4.</p>
 <figure class="wp-block-image"><img decoding="async" width="822" height="574" src="https://cdn.thebittimes.com/images/2024/03/04/61432aee6b5d07c6cb9f66ffd4137cbf.webp" alt class="wp-image-158602" srcset="https://cdn.thebittimes.com/images/2024/03/04/61432aee6b5d07c6cb9f66ffd4137cbf.webp 822w, https://cdn.thebittimes.com/images/2024/03/04/61432aee6b5d07c6cb9f66ffd4137cbf.webp 300w, https://cdn.thebittimes.com/images/2024/03/04/61432aee6b5d07c6cb9f66ffd4137cbf.webp 768w" sizes="(max-width: 822px) 100vw, 822px">
  <figcaption class="wp-element-caption"><em>MSTR short interest. Source: </em><em>Andrew Kang</em>
  </figcaption>
 </figure>
 <p class="paragraph">According to the cryptocurrency entrepreneur, many of these bettors are “angry TradFi boomers trying to capture the premium to [net asset value (NAV)],” but the premium went from 50% before the spot Bitcoin exchange-traded fund (ETF) approval to 13% after it, only to recover to the highs of the current 70%.</p>
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 <h2 class="wp-block-heading" id="h-backfiring-price-action">Backfiring price action?</h2>
 <p class="paragraph">Furthermore, Kang has suggested the possibility of a massive price rally similar to the GameStop (NYSE: GME) situation when hedge funds took major short positions in GME, but retail investors on Reddit’s <em>WallStreetBets</em> bought large quantities of the shares, creating a short squeeze, and causing the price to skyrocket.</p>
 <p class="paragraph">Finally, he also highlighted that MSTR has become large enough to become part of the S&amp;P500 index, as well as that “MSTR as levered BTC is back baby,” referring to MicroStrategy’s leveraged position in the flagship decentralized finance (DeFi) asset making a comeback.</p>
 <p class="paragraph">In conclusion, the <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a> <a rel="noopener noreferrer nofollow" title="interest" href="https://thebittimes.com/tag/interest.html">interest</a> on MSTR <a rel="noopener noreferrer nofollow" title="stock" href="https://thebittimes.com/tag/stock.html">stock</a>s is exceptionally high, indicating a dominant bearish sentiment. However, if Kang is correct in his <a rel="noopener noreferrer nofollow" title="Category Analysis" href="https://thebittimes.com/analysis.html">Analysis</a>, it could also backfire on the <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a>-bettors, particularly considering that high <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a> capitalizations also create <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> opportunities for the bulls.</p>
 <h2 class="wp-block-heading" id="h-mstr-price-analysis">MSTR price analysis</h2>
 <p class="paragraph">For the moment, the price of MSTR stock amounts to $1,079.40, recording a 5.53% increase on the day, as well as gaining 56.90% across the past week and advancing as much as 112.48% on its monthly chart,&nbsp;performing better than 99% of all other stocks in terms of its yearly performance.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="398" src="https://cdn.thebittimes.com/images/2024/03/04/c2f918b00cb62b95e1340509d597bec9.webp" alt class="wp-image-158600" srcset="https://cdn.thebittimes.com/images/2024/03/04/c2f918b00cb62b95e1340509d597bec9.webp 1024w, https://cdn.thebittimes.com/images/2024/03/04/c2f918b00cb62b95e1340509d597bec9.webp 300w, https://cdn.thebittimes.com/images/2024/03/04/c2f918b00cb62b95e1340509d597bec9.webp 768w, https://cdn.thebittimes.com/images/2024/03/04/c2f918b00cb62b95e1340509d597bec9.webp 1536w, https://cdn.thebittimes.com/images/2024/03/04/c2f918b00cb62b95e1340509d597bec9.webp 1781w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption"><em>MicroStrategy stock price 1-week chart. Source: TradingView</em>
  </figcaption>
 </figure>
 <p class="paragraph">On top of that, it is outperforming 97% of the other 279 stocks in the software industry, as well as making a new 52-week high, which is in line with the performance of the rest of the market, in addition to recording a healthy liquidity of 1.5 million traded shares per day.</p>
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 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/microstrategy-stock-set-for-mega-squeeze-despite-3-billion-short-interest-tbt81554.html">https://thebittimes.com/microstrategy-stock-set-for-mega-squeeze-despite-3-billion-short-interest-tbt81554.html</a></p>

MicroStrategy stock set for mega squeeze despite $3 billion short interest

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