MicroStrategy stock is up over 20% as BTC price continues to skyrocket.

Shares of MicroStrategy (MSTR) rose more than 20 percent on March 4 in early trading hours in the United States. At midday, it made a profit of over 15% Microstrategy is an active investor in Bitcoin (BTC).

After closing at $1,079 on March 3, MSTR opened at $1,200 on March 4 and reached an all-time high of $1,339.

According to Andrew Kang, founder of Mechanism Capital, about 20% of MicroStrategy's publicly available shares, about $3 billion, are locked up in short positions. Kang said on X:

“I think many of the floaters are angry traders trying to capture the premium to NAV. [net asset value]He said.

In other words, according to Kang, investors want to take advantage of the rising stock price relative to their net worth, assuming that the stock price will fall again.

Kang warned that a miscalculation could lead to a “mega-squeezing situation” like the one in January 2021 for short-squeezing GameStop ( GME ). On January 29, 2021, GM prices increased by 1,500% in two weeks. . After peaking above $81, GME fell to $13 within a month.

MicroStrategy added 3,000 BTC to its holdings between February 15 and 25 at an average price of $51,813 for a total of $155 million, founder and chairman Michael Salor said on February 26, bringing the company's BTC holdings to 193,000 BTC. The average price is $31,554 for a total price of $6.1 billion.

At a recorded BTC price of $66,332 on March 4, MicroStrategy's BTC holdings are worth $12.8 billion.

Related: AI, ETFs for Bitcoin – Michael Saylor Powers a Decade-Long ‘Gold Rush'

Market watchers were already bullish on the microstrategy. In the year In a February 27 market report, the investment bank called Benchmark MicroStrategy a “buy” rating with a $990 target price. Benchmark predicts that the upcoming BTC halving will also boost MicroStrategy's share price.

In the year On February 20, Saylor said he would buy bitcoin forever, saying it was technically superior to gold, real estate and the S&P 500.

MicroStrategy was trading at $1,251 at the time of writing, up nearly 16% on the day.

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