New York Stock Exchange “Second Bitcoin Short Selling Attack” Shakes MicroStrategy (MSTR) Cryptocurrency

New York Stock Exchange “Second Bitcoin Short Selling Attack” Shakes MicroStrategy (MSTR) Cryptocurrency

View larger imageMicroStrategy CEO Michael Seiler/ Photo = MicroStrategyMSTR Website

As the stock price of MicroStrategy (MSTR), a New York Stock Exchange-listed company that has invested heavily in virtual currencies such as Bitcoin, has risen sharply since Trump’s election, the number of short sellers is betting on the possibility of another fall due to short. -term overheating increases significantly.

According to the New York Stock Exchange on the 25th, Citron Research, a major short seller, placed a large short sell against MicroStrategy (MSTR). Andrew Left, founder and CEO of Citron Research, a major short seller on the New York Stock Exchange, said, “MicroStrategy’s valuation has completely deviated from the fundamental elements of Bitcoin.” The left has been bullish on MicroStrategy stock for some time. However, the recent rise in stock prices was so rapid that they sold the stock short, believing that a major correction would occur. Bitcoin, Ripple, Ethereum, Dogecoin, etc. are shaking due to the news of short selling on the New York Stock Exchange.

A short sale is expressed in English as a short sale on the New York Stock Exchange. It is also often abbreviated as short. It refers to an investment technique that sells goods in advance, receives money equal to the current price, and later completes the payment by paying ​back the same amount of goods, leaving an intermediate profit. You can also sell ghost stocks. It can be seen literally as meaning ‘selling something that doesn’t exist (short auction).’ Since you have transferred ownership of goods that you do not own to someone else, you can think of keeping the goods as a negative amount until the payment is completed. You will have to fill it later, but if the price of the product falls, you will benefit accordingly. The purpose of short selling is to complete a transaction based on the belief that the price of a commodity will fall further than the current price. Since you only have to pay back the amount equal to the amount of goods you borrowed, you will benefit when the price goes down. Of course, on the other hand, if the price rises more than the current price, you will suffer a loss. Short selling is one of the main ways to profit in a falling market. When trading derivatives at the same time, there are options such as buying put options and selling futures. In fact, futures sales have almost the same structure as short sales. Short selling is possible in the stock market as well as in commodity trading such as digital currency, derivatives, foreign exchange, food, and oil.

With SEC Gensler resigning, prices like Ripple, Ethereum, and Dogecoin are soaring, and Bitcoin is set to surpass $100,000 A famous short-selling investor on the New York Stock Exchange is selling short MicroStrategy, known as “de facto”. Bitcoin Company,” predicts possible decline in stock price Citron Research, led by short-selling investor Andrew Left, officially announced that it has started MicroStrategy to sell short through their social network account X. MicroStrategy is a company listed on the New York Stock Exchange, and the price of Bitcoin and the company’s stock prices tend to move in the same direction About the appearance of a short sale MicroStrategy, which fell 16% on the news of the short sale, has since reversed.MicroStrategy managed to recover its stock price, but virtual currencies such as Ripple, Doge Bitcoin, and Ethereum are changing.

It has been confirmed that the biggest beneficiary of former US President Donald Trump’s victory in the presidential election is not Elon Musk’s Tesla, but actually MicroStrategy (MSTR). Micro, which has the largest number of bitcoins among the world’s companies, has increased in stock price 2.5 times since October when the price of bitcoin increased after the US presidential election. Its market capitalization is approaching $100 billion, almost surpassing that of semiconductor chip maker Intel. Micro is a company whose core business is information technology (IT) services such as business intelligence and cloud computing. However, starting in 2020, the share of financial activity that buys Bitcoin began to strongly exceed the main industry. Micro mainly buys Bitcoin with money raised by issuing convertible bonds at an interest rate of 0%.

A speculative trade has a high risk of failure. In fact, when the price of Bitcoin fell by November 1, 2021, co-founder Michael Saylor resigned as CEO. Even this month, Micro spent $4.6 billion to buy 51,780 more bitcoins. The number of bitcoins held increased to 331,200. Michael Saylor, Chairman of the Board of Directors, appeared on CNBC on the 23rd (local time) and said, “Over the past two weeks, MicroStrategy’s Bitcoin valuation has increased by $5.4 billion (approximately KRW 7.5897 trillion ),” adding, “$500 million a day.” “We earn 700 billion each,” he said. On the 21st, Micro raised an additional $3 billion by issuing convertible bonds with a 0% interest rate that will mature in 2029. I plan to buy Bitcoin with this money.

People who find it difficult or hesitant to buy and sell Bitcoin directly buy exchange-traded funds (ETFs) or micro-stocks instead. I also bought a lot called ‘Seohak ants’. According to the Korea Securities Depository, the estimated value of MicroStrategy stock held by domestic investors on the 20th reached $1.9809 billion, ranking 10th in terms of holdings. The current valuation of Bitcoin, which Micro spent 16.5 billion dollars to buy, is about 30 billion dollars. Although the core business is losing every year, the stock market capitalization is three times that at $91.2 billion (closing price on the 22nd). Because of this difference, micro has often been the target of short selling forces. Micro is the stock that has delivered the biggest profits to professional short-selling investors this year. Citron Hedge Fund announced on the 20th that it had initiated short selling, saying, ‘There is a gap between Micro’s stock price and its intrinsic value.’

Daeho Kim, Director of Global Economic Research Institute [email protected]