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Short Seller Andrew Left Targets MicroStrategy Stock as Hedge Against Bullish Bitcoin Bet

Benzinga ·  Nov 21, 2024 19:39

Citron Research's Andrew Left believes the run in shares of $MicroStrategy (MSTR.US)$ is not going to end well in the near term, and he's putting his money where his mouth is.

What To Know: Left on Thursday announced a new short position in software firm turned $BTC/USD (BTCUSD.CC)$ holding company MicroStrategy, despite remaining bullish on the trajectory of Bitcoin.

"$MSTR's volume has completely detached from BTC fundamentals," the short seller said in a post on X.

Benzinga has reached out to MicroStrategy for comment.

Left noted in the post that his firm was bullish on MicroStrategy in 2020 when the stock was trading below $250 per share on a pre-split basis. He predicted at the time that MicroStrategy shares could hit $700.

"Fast forward to today: $MSTR has skyrocketed to over $5,000 (adjusted) ... while Citron remains bullish on Bitcoin, we've hedged with a short $MSTR position," Left said. "Much respect to @saylor, but even he must know $MSTR is overheated."

From Earlier This Year: EXCLUSIVE: First He Bet Against GameStop, Now Andrew Left Is 'Long Bitcoin... Short Ether'

Left isn't alone in thinking the recent surge in MicroStrategy shares won't last. Seabreeze Capital Partners' Doug Kass announced a short position in MicroStrategy from $533.78 Thursday morning. At the time of writing, Kass had already covered at least 75% of the initial short. He closed half of his short position at $468 and another quarter of his initial position at $429.10.

MicroStrategy shares have accelerated to the upside in recent weeks as the company continues to execute on its strategy to accumulate billions of dollars of Bitcoin. The company announced plans at the end of October to raise $42 billion over the next three years to keep buying Bitcoin.

MicroStrategy held a total of 331,200 Bitcoin purchased at an average price of approximately $49,874 per coin as of Nov. 17.

MSTR Price Action: MicroStrategy shares were trading above $540 in pre-market trading Thursday morning. The stock pulled back at the open and continued to move lower after Left announced his short position. MicroStrategy shares were up 0.8% at $477.95 at the time of publication, according to Benzinga Pro.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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Comment(12)

  • user-avatar

    Hmm 🤔

    Nov 21, 2024 19:40
  • user-avatar

    so he gets to announce his short bringing the stock down? and gets to profit off it at the same time ? ight

    Nov 21, 2024 19:44
  • user-avatar

    basically he's trying to make money off fucking over retail

    Nov 21, 2024 19:46
  • user-avatar

    That’s okay keep buying!
    All Aboard

    Nov 21, 2024 23:45
  • user-avatar

    Why does it matter what AL thinks? He has been charged with market manipulation by the DOJ right ✅️ 😄

    Nov 22, 2024 00:27
  • user-avatar

    is there any law in US to charge him??

    Nov 22, 2024 01:39
  • user-avatar

    why no lawsuit in US for market manupulation???

    Nov 22, 2024 01:40
  • user-avatar

    it isn't going to end well for him, once the meme stock buyers hear that we can short squeeze, it'll be the next game or amc

    Nov 22, 2024 02:52
  • user-avatar

    Short it so he can reenter at lower price

    Nov 22, 2024 03:42
  • user-avatar

    Its going to be a wild ride for Mr. Andrew Left XD

    Nov 22, 2024 12:13
  • user-avatar

    Back up $20 pre market

    Nov 22, 2024 13:05
  • user-avatar

    This guy from citron clearly does not understand

    Nov 22, 2024 15:45
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