MSTR Surges Past $400 as Market Anticipates Earnings Report
MicroStrategy’s stock (MSTR) breaches $400 ahead of its quarterly earnings—fueled by Bitcoin holdings and institutional FOMO.
Will the corporate Bitcoin whale’s gamble pay off? Analysts watch for treasury strategy updates as BTC flirts with all-time highs.
Meanwhile, traditional finance pundits scoff: ’Just wait for the next crypto winter.’
MSTR rallied in April, tracking the BTC recovery in the second half of the month. | Source: MSTR Google market summary
The performance of MSTR surpassed the net gains of BTC for the year to date. The MSTR shares expanded as Strategy kept announcing weekly BTC purchases, but the last day led to an even stronger rally. MSTR outperformed tech stocks, which were pressured by the US trade war talks.
The MSTR rally coincided with the ongoing recovery of BTC, up to $97,002.72. The leading coin expects to regain the $100,000 level soon, further boosting the exposure of MSTR. Strategy expanded its reserves to 2.63% of the BTC supply, becoming one of the largest single holders. The recent MSTR rally is also reviving the dilemma of whether owning MSTR is better compared to holding a self-custodied BTC.
Can MSTR go through a short squeeze?
MSTR is still far from its 12-month peak of $542.99. The recent rally is seen as either a short-term reaction to the earnings report or a potential short squeeze based on data about shorted MSTR shares and bets against Strategy.
In the past, MSTR has shown limited signs of a short squeeze, leading to rallies above the $400 level. However, traders warned that MSTR is not likely to repeat the scenario of GameStop and rely on irrational holding.
One mechanism with the effect of a short squeeze is the capital allocated to MSTY. The ticker represents an ETF that shorts MSTR.
MSTR is setup for a squeeze because billions of dollars of capital are unknowingly short it for "yield" (MSTY).
— Joe Burnett, MSBA (@IIICapital) May 1, 2025
Additionally, traders shorted derivative tickers MSTU and MSTX, also tied to the performance of MSTR. If MSTR continues the rally, some of those traders may have to close or cover their positions. Some of the short positions have been closed, but other holders may face ongoing losses. Previously, Saylor himself called for attempts at shorting MSTR to show confidence in the direction of the shares and the long-term potential of BTC.
The other possible scenario for MSTR is that the rally will stall after the quarterly results come in, dampening the hype. Some of the expectations see MSTR crashing back under $350 after the earnings call.
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