Bitcoin News Today: MicroCloud Hologram Eyes Breakout as Short Interest Hits 35.50% and Bitcoin Rally Fuels Optimism

MicroCloud Hologram Inc. (HOLO) is attracting growing attention from both retail and institutional investors as structural and technical indicators suggest the stock may be on the verge of a significant upward move [2]. As of August 1, 2025, the stock closed at $4.38, down 1.79% from its previous day’s price of $4.46 [2]. Despite Bitcoin’s recent rally and a general bullish sentiment in the cryptocurrency market, HOLO has remained range-bound since May, a pattern that some analysts associate with a buildup of buyer interest [1].

A key factor driving optimism around HOLO is its undervaluation. The company holds 2,353 Bitcoin (BTC), valued at over $272 million, yet it has a market capitalization of only $63 million [1]. This results in a net asset value (NAV) multiple of 0.234, significantly lower than its peers such as Strategy (1.4) and Metaplanet (2.5) [1]. Additionally, MicroCloud’s balance sheet is largely free of debt, with total liabilities reported at just $4.4 million in its most recent annual report [1]. This low leverage strengthens the case for a potential revaluation of the company’s stock.

Another compelling aspect is the high short interest in the stock, currently at 35.50%, which is well above the 10% short interest for Marathon Digital (MSTR) and approaching that of MARA Holdings at 35% [1]. A high short interest often indicates that a stock could be vulnerable to a short squeeze if market conditions turn in favor of longs. Historical examples such as GameStop and AMC have demonstrated how heavily shorted stocks can experience rapid price surges under the right circumstances.

Technically, the stock is currently in the accumulation phase as defined by Wyckoff Theory, characterized by a sideways price movement with low volume [1]. This is typically followed by a markup phase in which demand begins to outstrip supply. If this pattern repeats, HOLO could see a move toward key resistance at $9.90, which marks its previous June high [1].

The company recently executed a 1-for-40 share consolidation, meaning shareholders now hold one share for every 40 previously held [3]. This action is often used to improve the stock’s liquidity and attractiveness to both retail and institutional investors. The move has also increased the visibility of HOLO among speculative traders, particularly on platforms like Reddit [4].

Broader market conditions are also favorable for HOLO. On August 7, the cryptocurrency market rallied on speculation of an executive order from President Donald Trump that could expand access to crypto assets in retirement portfolios [1]. While this development does not directly affect HOLO, a positive sentiment in the broader market can benefit small-cap stocks, particularly those seen as part of the innovation or speculative space.

HOLO’s position in the electronic components industry, combined with its low market capitalization of approximately $63.936 million, makes it a potential candidate for short-term speculative plays [2]. Investors are closely watching for signs of a breakout as the stock aligns with both technical and structural setups that historically have led to significant price movements.

[1] https://crypto.news/crypto-rally-why-are-bitcoin-and-altcoins-going-up-today-07-08/

[2] https://stockinvest.us/stock/HOLO

[3] https://help.wealthsimple.com/hc/en-ca/articles/44154****0363-Corporate-actions-tracker

[4] https://www.reddit.com/r/pennystocks/