Why Bitcoin-Linked MicroStrategy Stock Surged Today

MicroStrategy Incorporated MSTR shares traded higher Monday after exchange operator Cboe refiled Bitcoin ETF proposals.

What To Know: Cboe resubmitted an application with the SEC seeking approval for a Bitcoin BTC/USD ETF managed by Fidelity Investments on Friday, per Reuters.

Cboe said it would collaborate with Coinbase COIN in order to prevent market manipulation during the ETF launch process.

According to data from Benzinga Pro, MSTR stock experienced above-average trading volume of 1.1 million shares on Monday compared to its average volume of 898,680.

MicroStrategy also has elevated short interest with 27.2% of shares currently sold short, which could have helped to fuel Monday's outsized move.

MicroStrategy is a business intelligence, mobile software and cloud-based services company, but more than anything else, it's a bet on Bitcoin. In its most recent earnings report, MicroStrategy said it increased its bitcoin holdings to 140,000.

Related Link: Why Marathon Digital Holdings Stock Popped Today

MSTR Price Action: Shares of MSTR closed Monday up 10.3% at $377.84, according to Benzinga Pro. 

Image by Pete Linforth from Pixabay