Chip

when

Rise

Daily

Considering the significant growth that MicroStrategy (MSTR) has recorded in the last few months, the stock’s short sellers are now reeling in notable losses. 
<h2 id="strong-microstrategy-short-sellers-reeling-in-losses-strong">MicroStrategy Short Sellers Reeling in Losses</h2> 
Business intelligence and software company MicroStrategy has seen huge growth this year even with its shares registering very high gains. According to a Bloomberg <a rel="nofollow" href="https://www.bloomberg.com/news/articles/2024-03-13/microstrategy-mstr-burns-shorts-for-3-billion-as-squeeze-risk-rises">report</a>, the current outlook of the market threatens traders’ bets against the company as they are looking at experiencing massive paper losses.&nbsp; 
Within the first three months of this year alone, these MicroStrategy short sellers positioning against the company have seen losses amounting to over $3.3 billion. This is closely linked to the fact that MSTR shares have recorded over 155% surge within the same period, per data from S3 Partners LLC. 
According to Larry Tentarelli, the Chief Technical Strategist, Blue Chip Daily Trend Report,&nbsp; 
<blockquote>
 “Shorting MicroStrategy is a tough position to take.”&nbsp;
</blockquote> 
<h2 id="strong-the-rise-and-fall-of-mstr-shares-strong">The Rise and Fall of MSTR Shares</h2> 
Towards the end of February, MSTR <a href="https://coingape.com/microstrategys-bitcoin-bet-unlocks-massive-shareholder-value-mstr-at-1000/">registered 10% gains</a> for the second consecutive day closing at $962.95. In a few hours, an additional 2.85% price surge was recorded for the MSTR stock, moving the shares closer to $1000. 
The MSTR price rally happened around the same time when Bitcoin (BTC) price was experiencing massive gains. At that time, the leading digital asset by market capitalization was trading at $64,000 with a total weekly gain of around 20%. Even at this rate, MSTR shares notably outperformed that of Bitcoin.&nbsp; 
In the first week of March, the <a href="https://coingape.com/microstrategy-shares-plunge-after-token-purchase-announcement/">MSTR shares plunged</a> by more than 15% during a volatile trading session. The plunge happened right after MicroStrategy announced plans to buy more of Bitcoin using the money raised from the sale of $600 million in convertible senior notes. Tentarelli believes that this would have been the chance for short sellers to bag profits. 
However, the MSTR shares were quick to <a href="https://coingape.com/just-in-microstrategy-eyes-600m-boost-after-shares-skyrocket-23/">recover</a>, leaving the MicroStrategy short sellers at a loss. With Bitcoin price <a href="https://coingape.com/bitcoin-price-spot-bitcoin-etf-saw-record-net-inflow-1-05-billion/">still surging</a>, the MSTR stock is likely to also face further positive momentum, keeping its short sellers in more pain.&nbsp; 
Generally, it is obvious that MicroStrategy Bitcoin strategy is paying off. With its <a href="https://coingape.com/breaking-microstrategy-bitcoin-holdings-exceed-200000-in-latest-acquisition/">huge Bitcoin holding</a> running into 203,000 BTC, MicroStrategy is fated to reap huge profit amidst the Bitcoin rally. 
The post <a href="https://coingape.com/microstrategy-mstr-sends-short-sellers-packing-amid-155-ytd-surge/">MicroStrategy (MSTR) Sends Short Sellers Packing Amid 155% YTD Surge</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

MicroStrategy (MSTR) Sends Short Sellers Packing Amid 155% YTD Surge

Table of Contents

Coingape News Media

Other articles published on Mar 13, 2024

How One Bitgert Trader’s $100 Investment Catapulted to $1.9M – Can You Replicate Their Triumph?

Fitch Updates Forecast for When and How Much the Fed Will Cut Interest Rates

Bitcoin Whale Books $217 Million Profit After BTC Broke $73,000

SEC Takes Legal Action Against Crypto Firms Following Market Downturn

Bitcoin Surges to Become 8th Largest Global Asset, Overtaking Silver in Milestone Moment

Google initiates net zero drive: seeking AI carbon reduction leader

Join our free newsletter for daily crypto updates!