MicroStrategy stock surges over 20% as BTC price continues to rise

The stock price of MicroStrategy (MSTR) surged over 20% on March 4th during the early trading hours in the United States. By the end of the trading day, the stock had gained even more momentum, closing with a significant increase. This rapid rise in stock price is a testament to the company's success and the confidence investors have in its future prospects. MicroStrategy has established itself as a leading player in the business intelligence and analytics industry, providing innovative solutions to a wide range of clients. With its strong financial performance and strategic acquisitions, MicroStrategy is well positioned for continued growth in the market. Investors are optimistic about the company's potential and are closely following its progress. As the stock market continues to evolve, MicroStrategy remains a compelling choice for investors seeking opportunities in the technology sector.

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The stock price of MicroStrategy (MSTR) rose over 20% on March 4 in the early hours of trading in the United States. By midday, it still maintained a gain of over 15%. MircoStrategy is a strong investor in Bitcoin, so the price of Bitcoin directly affects the stock price.

After closing at $1,079 on March 3, MSTR opened at $1,200 on March 4 and reached a high of $1,339 during the day.

According to Mechanism Capital co-founder Andrew Kang, around 20% of MicroStrategy’s public shares, valued at around $3 billion, are locked in short positions.

In other words, investors are looking to take advantage of the compounding interest from continuous cash flow.

Kang warned that miscalculations could lead to a “discrepancy bubble turning into a major squeeze,” as seen in the short squeeze of GameStop (GME) in January 2021. On January 29, 2021, GME’s price rose 1,500% in two weeks. After reaching a high of $81, GME dropped to $13 within a month.

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