2024

Bitcoin

when

Zero

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 <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>
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 <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>
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 </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>
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 <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>
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    <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
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 </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>
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 <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)
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 </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

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