2024

Bitcoin

when

Zero

<div class="finbold">
 <p class="paragraph">MicroStrategy Inc (NASDAQ: MSTR) achieved worldwide recognition due to its former CEO, Michael Saylor, passionate support of Bitcoin (BTC), the leading cryptocurrency. Now, MSTR <a rel="noopener noreferrer nofollow" title="stock" href="https://thebittimes.com/tag/stock.html">stock</a> could be on the edge of a <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a> <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> following BTC’s action.</p>
 <p class="paragraph">The <a rel="noopener noreferrer nofollow" title="stock" href="https://thebittimes.com/tag/stock.html">stock</a> market has seen increased <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a> interest in MicroStrategy <a rel="noopener noreferrer nofollow" title="stock" href="https://thebittimes.com/tag/stock.html">stock</a>s, with nearly 20% of all shares in <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a> positions. According to <em>Fintel</em> on March 13, MSTR’s <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a> interest rate is currently at 19.31%, with 2,887,416 shares.</p>
 <p class="paragraph">Interestingly, considering its daily volume, this would require 0.87 days to cover all short positions in the event of massive liquidations. Therefore, increasing the likelihood of a short squeeze, driving MicroStrategy’s price upwards amid a surge trigger.</p>
 <div class="border border-red-300 rounded-xl p-6 not-prose mb-6">
  <h3 class="text-2xl font-black mt-0 flex gap-x-3 mb-5">
   <svg width="32" height="32" viewbox="0 0 32 32" fill="none" xmlns="//www.w3.org/2000/svg"><path d="M4 10.6665V25.3332C4 28.2678 6.392 29.3332 8 29.3332H28V26.6665H8.016C7.4 26.6505 6.66667 26.4078 6.66667 25.3332C6.66667 24.2585 7.4 24.0158 8.016 23.9998H28V5.33317C28 3.8625 26.804 2.6665 25.3333 2.6665H8C6.392 2.6665 4 3.73184 4 6.6665V10.6665ZM8 5.33317H25.3333V21.3332H6.66667V6.6665C6.66667 5.59184 7.4 5.34917 8 5.33317Z" fill="#EF4444"> 
    </path> <path d="M15.996 18.6668L20.4626 14.2815C20.738 14.0166 20.9571 13.6989 21.1068 13.3473C21.2564 12.9957 21.3336 12.6176 21.3336 12.2355C21.3336 11.8534 21.2564 11.4752 21.1068 11.1236C20.9571 10.7721 20.738 10.4543 20.4626 10.1895C19.9074 9.64148 19.1587 9.33422 18.3786 9.33422C17.5985 9.33422 16.8498 9.64148 16.2946 10.1895L15.996 10.4801L15.6973 10.1881C15.1423 9.64023 14.3938 9.33301 13.614 9.33301C12.8341 9.33301 12.0856 9.64023 11.5306 10.1881C11.2552 10.453 11.0361 10.7707 10.8865 11.1223C10.7368 11.4739 10.6597 11.852 10.6597 12.2341C10.6597 12.6162 10.7368 12.9944 10.8865 13.346C11.0361 13.6975 11.2552 14.0153 11.5306 14.2801L15.996 18.6668Z" fill="#EF4444"> 
    </path>
   </svg> Picks for you</h3>
  <div class="grid md:grid-cols-2 gap-x-10 gap-y-3 md:gap-y-5 divide-y divide-gray-300 md:divide-y-0">
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Ethereum Dencun upgrade goes live; Can ETH hit $5k? <span class="self-center text-xs text-slate-500">15 mins ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Everyrealm unveils Everyworld, a blockchain discovery and rewarded ads protocol&nbsp; <span class="self-center text-xs text-slate-500">2 hours ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Top 3 altcoins for 10X returns in 2024 <span class="self-center text-xs text-slate-500">2 hours ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Bitcoin is up $70k from March 2020 crash <span class="self-center text-xs text-slate-500">2 hours ago</span>
   </div>
  </div>
 </div>
 <div class="mb-4 bg-slate-50 rounded-md layout-adjustment">
  <div id="finbold.com_middle" style="min-width: 300px; min-height: 250px;">
  </div>
 </div>
 <figure class="wp-block-image size-full"><img decoding="async" width="894" height="354" src="https://cdn.thebittimes.com/images/2024/03/13/433c66b87693c5ffd13af54c9a6e6fcf.webp" alt class="wp-image-160868" srcset="https://cdn.thebittimes.com/images/2024/03/13/433c66b87693c5ffd13af54c9a6e6fcf.webp 894w, https://cdn.thebittimes.com/images/2024/03/13/433c66b87693c5ffd13af54c9a6e6fcf.webp 300w, https://cdn.thebittimes.com/images/2024/03/13/433c66b87693c5ffd13af54c9a6e6fcf.webp 768w" sizes="(max-width: 894px) 100vw, 894px">
  <figcaption class="wp-element-caption">
   MSTR stock short interest. Source: <em>Fintel</em>
  </figcaption>
 </figure>
 <h2 class="wp-block-heading" id="h-what-do-analysts-say-about-an-incoming-short-squeeze-for-mstr-stock">What do analysts say about an incoming short squeeze for MSTR stock</h2>
 <p class="paragraph">On that note, <em>Bitcoin Munger</em> shared a short-squeeze alert for MSTR stock on March 12, mentioning MicroStrategy short-sellers are underwater. This account belongs to a portfolio manager and Bitcoin enthusiast, as per its self-description.</p>
 <blockquote class="wp-block-quote">
  <p class="paragraph">“All shorts in MicroStrategy are deeply under water. You don’t have to be a rocket scientist like [Michael] Saylor to know they will be forced to capitulate and send the stock to the moon.”</p> <cite>– Bitcoin Munger</cite>
 </blockquote>
 <figure class="wp-block-image size-large"><img decoding="async" width="584" height="1024" src="https://cdn.thebittimes.com/images/2024/03/13/b54358b997539cc256d2820a7d131dd7.webp" alt class="wp-image-160871" srcset="https://cdn.thebittimes.com/images/2024/03/13/b54358b997539cc256d2820a7d131dd7.webp 584w, https://cdn.thebittimes.com/images/2024/03/13/b54358b997539cc256d2820a7d131dd7.webp 171w, https://cdn.thebittimes.com/images/2024/03/13/b54358b997539cc256d2820a7d131dd7.webp 768w, https://cdn.thebittimes.com/images/2024/03/13/b54358b997539cc256d2820a7d131dd7.webp 875w, https://cdn.thebittimes.com/images/2024/03/13/b54358b997539cc256d2820a7d131dd7.webp 994w" sizes="(max-width: 584px) 100vw, 584px">
  <figcaption class="wp-element-caption">
   MicroStrategy short data. Source: <em>Bitcoin Munger</em>
  </figcaption>
 </figure>
 <p class="paragraph">However, commentators like J. Fong believe the number of short positions is still low enough to trigger a major short squeeze alert.</p>
 <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
  <div class="wp-block-embed__wrapper">
   <blockquote class="twitter-tweet" data-width="500" data-dnt="true">
    <p lang="en" dir="ltr">Lol I thought I was taking crazy pills, that is nothing when it comes to shorts. Zero chance this is squeezing.</p>— Steph (@StephStones1) March 13, 2024
   </blockquote>
  </div>
 </figure>
 <h2 class="wp-block-heading" id="microstrategy-correlation-to-bitcoin">MicroStrategy correlation to Bitcoin</h2>
 <p class="paragraph">In this context, understanding MicroStrategy’s correlation to Bitcoin is crucial for a thoughtful analysis. Investors consider MSTR an indirect exposure to Bitcoin’s action due to the company’s high treasury allocation to the digital commodity.</p>
 <p class="paragraph">Michael Saylor, the former CEO, is a fearless Bitcoin advocate, having bought record amounts of BTC under its company’s name. In particular, MicroStrategy holds 205,000 BTC, according to <em>Bitcoin Treasuries</em><em>, </em>worth nearly $15 billion. It is the number one public company in Bitcoin holdings, far ahead of Marathon Digital (NASDAQ: MARA), with 16,930.</p>
 <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="181" src="https://cdn.thebittimes.com/images/2024/03/13/8be348ccf936b5580b987ec0d81c5c8d.webp" alt class="wp-image-160876" srcset="https://cdn.thebittimes.com/images/2024/03/13/8be348ccf936b5580b987ec0d81c5c8d.webp 1024w, https://cdn.thebittimes.com/images/2024/03/13/8be348ccf936b5580b987ec0d81c5c8d.webp 300w, https://cdn.thebittimes.com/images/2024/03/13/8be348ccf936b5580b987ec0d81c5c8d.webp 768w, https://cdn.thebittimes.com/images/2024/03/13/8be348ccf936b5580b987ec0d81c5c8d.webp 1536w, https://cdn.thebittimes.com/images/2024/03/13/8be348ccf936b5580b987ec0d81c5c8d.webp 2048w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Public companies that own Bitcoin. Source: <em>Bitcoin Treasuries</em>
  </figcaption>
 </figure>
 <p class="paragraph">On the other hand, the company has a market cap of $28.84 billion, just two times higher than its Bitcoin holdings. Consequently, MicroStrategy <a rel="noopener noreferrer nofollow" title="stock" href="https://thebittimes.com/tag/stock.html">stock</a> has shown a historical correlation to Bitcoin’s price, which has increased in the past few days. As of writing, MSTR trades at $1,664.82 per share, while BTC changes hand by $72,602.21.</p>
 <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="661" src="https://cdn.thebittimes.com/images/2024/03/13/dc87846fc0bdf7acd37dce0bbe7f7096.webp" alt class="wp-image-160877" srcset="https://cdn.thebittimes.com/images/2024/03/13/dc87846fc0bdf7acd37dce0bbe7f7096.webp 1024w, https://cdn.thebittimes.com/images/2024/03/13/dc87846fc0bdf7acd37dce0bbe7f7096.webp 300w, https://cdn.thebittimes.com/images/2024/03/13/dc87846fc0bdf7acd37dce0bbe7f7096.webp 768w, https://cdn.thebittimes.com/images/2024/03/13/dc87846fc0bdf7acd37dce0bbe7f7096.webp 1536w, https://cdn.thebittimes.com/images/2024/03/13/dc87846fc0bdf7acd37dce0bbe7f7096.webp 1875w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   MSTR and BTC daily price chart. Source: <em>TradingView</em> (Finbold)
  </figcaption>
 </figure>
 <p class="paragraph">All things considered, it is uncertain whether MicroStrategy stocks will experience a short squeeze. The short-interest data shows a relevant consideration for that, but analysts may disagree on its likelihood.&nbsp;</p>
 <p class="paragraph">Nevertheless, continuing the Bitcoin uptrend could fuel a similar trend to MSTR due to the high correlation between both assets. A significant upward movement could trigger liquidations, in that case, starting a major short squeeze for MicroStrategy.</p>
 <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>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/major-short-squeeze-incoming-for-microstrategy-stock-tbt82446.html">https://thebittimes.com/major-short-squeeze-incoming-for-microstrategy-stock-tbt82446.html</a></p>

Major short squeeze incoming for MicroStrategy stock

目錄

TheBitTimes

在 2024年3月13日發表的其他文章

Ether Price Might Fall as Dencun Upgrade Nears: QCP Capital

Grayscale to launch a ‘mini-Bitcoin fund’? All you need to know

Crypto Bull Run – How to not Mess Up with Crypto Investments

SEC Takes Legal Action Against Crypto Firms Following Market Downturn

Shiba Inu ETF Gains Momentum With Over 6K Votes

Altcoin Surge Mirrors Bitcoin’s High as Crypto Market Gains Momentum

訂閱免費電子報，每天收取加密貨幣最新動態！