MicroStrategy Stock Surges Amid Potential Market Impact

According to Odaily, MicroStrategy (MSTR) shares have surged to $190 for the first time since late March, closing with a 5.5% increase. Markus Thielen, founder of 10x Research, noted in a report that surpassing the $180 price level could generate further momentum for the stock, despite his analysis indicating that the stock is overvalued by 44% relative to Bitcoin (BTC). If the stock price exceeds $180, hedge funds holding $4.6 billion in short positions may face pressure to cover their positions. Additionally, the strong demand for the company's bonds and the increasing issuance volume could prompt MicroStrategy to raise more debt to purchase Bitcoin. Thielen wrote, 'It seems logical to buy Bitcoin through debt.' He added that the breakthrough in MicroStrategy's stock price might create a 'chicken-and-egg' effect, where the stock's momentum positively influences Bitcoin's price, forming a feedback loop.