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Why is MSTY Up Today After Bitcoin Strategy Speculation

The Tidal Trust II YieldMax MSTR Option Income Strategy ETF (MSTY) closed up 3.28% at $29.87 on January 17, 2025, as MicroStrategy's stock surged amid heightened social media activity and speculation about its Bitcoin strategy. MicroStrategy (MSTR) shares rose 6.9% during mid-day trading, reaching as high as $392.61, driven by reports of a potential increase in its authorized share limit from 330 million to 10.33 billion shares. This move is seen as a strategic step to bolster its Bitcoin acquisition efforts, leveraging its position as a major Bitcoin holder. The anticipation of shareholder approval for this significant increase in share issuance has fueled investor optimism, despite potential dilution concerns. Additionally, Bitcoin itself saw a rally following hints from President-elect Donald Trump about prioritizing cryptocurrency in his upcoming administration, further boosting sentiment around crypto-linked stocks like MicroStrategy.