MicroStrategy, a provider of analytical software, has become a way for traders to invest in bitcoin, resulting in a 496% increase in its stock price in 2021. The company values each share of its stock at 2.5 times the value of its bitcoin holdings. The incoming US administration is expected to be more lenient towards cryptocurrency, which could drive up the price of bitcoin. MicroStrategy has been increasing its bitcoin position since the 2020 presidential election and recently acquired an additional 15,350 bitcoins for $1.5 billion, bringing its total holdings to around 440,000 bitcoins. However, the increasing short interest in MicroStrategy's stock could lead to brokers demanding they buy stock to cover their losses, potentially causing significant losses for short-sellers.
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