👉👉👉 How #MicroStrategy ’s #BullRun🐂 is crushing short sellers
MicroStrategy, led by #MichaelSaylor , has been making waves in the stock market, catching short sellers off guard with its meteoric rise. The company, known for its bullish stance on #Bitcoin , has seen its shares surge, tripling in value so far this year alone. This surge coincides with Bitcoin's new all-time highs, flipping the script on those betting against MicroStrategy.
Short sellers betting on a downfall for MicroStrategy are facing staggering paper losses, totaling a whopping $3.3 billion for 2024 due to the stock's 170% climb. This financial hit has been brewing for a year, with cumulative losses over the past 12 months surpassing $4.3 billion.
MicroStrategy's volatile journey has surprised skeptics, emphasizing the risks of shorting the stock. Larry Tentarelli underscores this risk, evident when the company's shares plunged by over 20% in response to news of a convertible note sale to fund more Bitcoin acquisitions.
MicroStrategy's aggressive strategy could lead to trouble for short sellers, with a potential short squeeze looming. This scenario may compel traders to buy shares at higher prices to cover losses, further boosting the stock price. Given MicroStrategy's large float of over 22%, a short squeeze could materialize soon.
Wall Street analysts are raising their price targets for MicroStrategy amid its aggressive Bitcoin acquisition strategy. Canaccord Genuity sets a street-high target of $1,810, reflecting growing confidence in the company. MicroStrategy's recent $822 million investment in Bitcoin, as prices soared above $73,000, further boosts optimism.
Analysts like Lance Vitanza of Cowen view MicroStrategy's stock as an attractive indirect route to Bitcoin exposure. The company's continuous Bitcoin acquisitions, including a proposed sale of convertible senior notes for further purchases, reaffirm its position as the largest corporate holder of Bitcoin, with over 205,000 Bitcoins valued at $15 billion in its treasury.
Source - cryptopolitan.com
