Why did MicroStrategy gain today? Crypto stocks rise as risk appetite improves

MicroStrategy ( NASDAQ: MSTR ) climbed as much as 13.3% on Wednesday amid gains in cryptocurrency-related stocks as risk appetite seemed to improve, with investors in broader markets bargain hunting after last month's selloff. The stock dropped over 9% last week to an over two-year low after the software firm said it sold a small part of its bitcoin ( BTC-USD ) holdings for the first time. The sale is expected to generate tax benefit as the company plans to carry back capital losses from the transaction against prior capital gains. Shares of MicroStrategy ( MSTR ) posted four straight weeks of decline and fell 13.2% in the last six months. MicroStrategy ( MSTR ) short interest is currently at 36.3%. According to SA contributor CashFlow Hunter, the firm remains a terrible investment as its equity is "essentially a massive and massively underwater, leverage bet on bitcoin". SA Quant has warned investors that MicroStrategy ( MSTR ) is at high risk of performing badly, owing to its negative EPS revisions and high valuation .