MicroStrategy currently has $6.9 billion in major short positions, with 18 of these listed on Fintel’s “The Big Shorts” list, which tracks the largest short positions disclosed to the SEC.
MicroStrategy currently has $6.9 billion in major short positions, with 18 of these listed on Fintel’s “The Big Shorts” list, which tracks the largest short positions disclosed to the SEC. The largest individual short position stands at approximately $2.4 billion, making it the 27th largest net short position among institutions. Despite holding significant short positions against Michael Saylor’s MicroStrategy, institutional investors are showing signs of retreat as the stock price has nearly tripled over the past six months.
The short-interest ratio for MicroStrategy, an indicator of the average number of days short sellers need to close their positions, has plummeted by nearly 50%, from 3.1 days to 1.5 days over the last six months. This decrease implies a waning confidence among short sellers, as the stock’s price has surged from $570 in December 2023 to $1,656 as of June 6, 2024, according to Google Finance data.
MicroStrategy’s stock has seen a 30.57% increase in the past 30 days alone. This sharp rise comes shortly after Kerrisdale Capital, a crypto-skeptic investment firm, raised doubts about the viability of investing in MicroStrategy for Bitcoin exposure following the launch of several spot Bitcoin ETFs. Kerrisdale argued that the unique advantage of holding MicroStrategy shares for Bitcoin exposure had diminished with the new ETFs available.
In an analyst note from March 28, Kerrisdale Capital stated, “The days when MicroStrategy shares represented a rare, unique way to gain access to Bitcoin are long over.” Despite these concerns, MicroStrategy’s stock has significantly outperformed Bitcoin over the past year. MSTR has risen approximately 469%, while Bitcoin has increased by 168% in the same period.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
