4. MicroStrategy Incorporated (NASDAQ: MSTR)
Number of Hedge Fund Holders: 20
Float Shorted: 27.5%
MicroStrategy Incorporated (NASDAQ: MSTR) is placed fourth on our list of 10 most-shorted stocks Reddit’s WallStreetBets is paying attention to. The stock has returned 361% to investors in the past twelve months. The firm operates as a software vendor focusing on enterprise analytics. It is based in Virginia. In recent months, the firm has invested heavily in cryptocurrencies. It was hit by a recent slump in crypto prices, but has managed to weather the storm because of mentions on Reddit forums like WallStreetBets.
On May 4, investment advisory William Blair initiated coverage of MicroStrategy Incorporated (NASDAQ: MSTR) stock with an Outperform rating. The advisory identified the company as one of the leading software vendors in enterprise analytics.
At the end of the first quarter of 2021, 20 hedge funds in the database of Insider Monkey held stakes worth $132 million in MicroStrategy Incorporated (NASDAQ: MSTR), up from 15 in the previous quarter worth $134 million.
In its Q1 2021 investor letter, Alger, an asset management firm, highlighted a few stocks and MicroStrategy Incorporated (NASDAQ: MSTR) was one of them. Here is what the fund said:
“MicroStrategy Incorporated was among the top contributors to performance. MicroStrategy is a global leader in enterprise analytics software and services. MicroStrategy’s core software platform provides customers with visualization and reporting capabilities, mobility features and custom applications to help with complex business questions. Today, MicroStrategy has over 4,000 customers worldwide. In August 2020, MicroStrategy decided to make bitcoin its preferred reserve currency. To date, MicroStrategy has purchased over 90,000 bitcoins at an aggregate purchase price of $2.17 bi11 ion and an average price of over $23,985 per bitcoin. Going forward, MicroStrategy plans to use excess cash generated by its core business to purchase additional bitcoin.
Shares of MicroStrategy outperformed in the first quarter due to the appreciation of the company’s bitcoin asset, as the price of
bitcoin relative to the U.S. dollar rose materially in the quarter. This bitcoin appreciation was driven by concerns about U.S. dollar inflation as well as other public companies deciding to acquire bitcoin to diversify reserve assets. MicroStrategy is establishing itself as a thought leader in the bitcoin space, and the company hosted an event at its February user conference to help other organizations understand the benefits of bitcoin as a reserve asset. MicroStrategy’s core software business is also benefitting from its status as a leader in the bitcoin space, with the increased public attention aiding MicroStrategy’s recruitment and marketing efforts as the software business continues to transition to a cloud-based subscription model.”
