Bitcoin ETF Buzz Gives MSTR a Boost

MicroStrategy Incorporated (NASDAQ:MSTR) is making headlines this morning, as VanEck once again attempts to get a bitcoin exchange-traded fund (ETF) approved by the U.S. Securities and Exchange Commission. VanEck's last attempt was in September 2019. This push for a bitcoin ETF comes amid a big shakeup for the SEC, with Chairman Jay Clayton retiring last week, and investment management chief Dalia Blass -- a critic of the cryptocurrency -- leaving next month. MicroStrategy, which has been considered a synthetic bitcoin ETF after investing over $1 billion in the currency, is getting a boost on the news -- up 1.2% at $394.50 at last check. 

Today's pop has the software concern pacing for a fresh all-time closing high, marking the equity's third this week. In fact, for the past couple weeks MSTR has been in rally mode --thanks to support at the 20-day moving average -- quickly closing an early December bear gap to finish the year with an over 173% lead for 2020. 

Despite the recent run up the charts, short sellers have been circling MicroStrategy stock in droves. Short interest shot up 264.3% during the last two reporting periods, and now the 1.03 million shares sold short make up a solid 14.2% of the stock's available float, or a little under three days of  pent-up buying power. Should MSTR continue its climb higher, an unwinding of some of this pessimism could create even more tailwinds for the equity.