MSTR Short Squeeze: 5 Reasons to Buy MicroStrategy Stock

MicroStrategy (MSTR) has always been one of my favorite crypto stocks ever since Michael Saylor bought Bitcoin in August 2020 and started advocating for “digital gold” over fiat money.

Since then, inflation has destroyed the purchasing power around the world and forced millions of people into financial problems. Most people live paycheck to paycheck and cannot save money or think about an early retirement.

That’s why Saylor decided to add Bitcoin to his company’s balance sheet and start a global movement towards sound money that’s backed by math not governments or war.

With several Bitcoin Spot ETF approvals and the April 2024 halving event just around the corner, I’m buying up MSTR stock left and right before Bitcoin’s price soars.

MSTR isn’t the cheapest stock around so it’s a slightly different short squeeze strategy than you will normally read on this site. MSTR stock trades at around $320 per share but you don’t need own own 100+ shares to profit from its volatility.

5 Reasons to Buy MicroStrategy Stock Before The Upcoming Short Squeeze

1. MicroStrategy Stock is One of the Most Shorted Stocks on the NASDAQ

MSTR has a short interest of 22%, which makes it a solid target for a short squeeze.

2. MSTR is the Default Bitcoin ETF That Doesn’t Charge Fees

When choosing between MSTR stock or Bitcoin ETF, MSTR gives investors the ability to own Bitcoin-backed asset without paying an expense ratio. When Bitcoin spot ETFs get approved, you will pay an annual fee to the ETF company for managing the fund.

MSTR stock is a good way to own a well-managed Bitcoin type of “fund” without paying any fees.

3. Several Bitcoin Spot ETF Approvals Could Happen in the Next 3 to 6 Months

The SEC didn’t submit an appeal to the court’s Grayscale Bitcoin Spot ETF conversion case so there should be several ETFs approved within the next 180 days. This is bullish overall for Bitcoin because many investors want to invest in BTC through an ETF.

4. MSTR Stock Could Reach $6,000 During the Next Crypto Bull Run

Crypto experts like Davinci predict the crypto market will 20x during the next bull run. MSTR shares have outperformed Bitcoin YTD and could reach $6,000 assuming no further dilution. The company holds $2.2 billion in low-interest convertible debt that would dilute shareholders somewhat.

5. Short Sellers Will Cover Their Losses So Take Profits in 2025

It doesn’t make sense to short MSTR heading into the April 2024 Bitcoin halving but short sellers haven’t covered their positions yet.

Once the shorts cover, that will be a signal to sell at the top of the bull market around October 2025.

I’m Buying MSTR Stock Heavily

I started a new MSTR position at $325 and will continue to buy throughout the rest of 2023.

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