Large short stocks play $6.9B with MicroStrategy stocks
A number of institutions are still waiting on Michael Seiler's software intelligence firm MicroStrategy's share price, which is $6.9 billion in major short positions.
However, as prices have tripled in six months, the short-seller's decision seems to be waning.
In the year As of June 6, MicroStrategy has 18 short positions listed on the investment research firm Fintel's “Largest Shorts” list — the largest list of short positions reported by institutions to the SEC.
At nearly $2.4 billion, the largest position is also the 27th largest short-term position among institutions.
That's less than a billion from Amazon's top net short position of $3.59 billion. Overall, the largest net short position in the United States is in the SPDR S&P 500 Trust exchange-traded fund (ETF), which is $114.06 billion.
Although some institutions are betting on the failure of the micro strategy, there is a significant decline in short seller confidence. MicroStrategy's stock's short interest ratio has fallen 50% over the past six months, from 3.1 days to 1.5 days.
The popular indicator helps traders analyze the risk of short-squeezing by showing the average number of days it takes for short-sellers to close their positions. The lower the number of days, the lower the short-seller's interest.
According to Google Finance data, MTSR has rallied since December 2023, when it started at $570 and has since tripled to $1,656.
It comes months after crypto-skeptic investment firm Kerrisdale Capital put pressure on shares of MicroStrategy following the launch of a spot bitcoin (BTC) exchange-traded fund (ETF) this year.
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Kerrisdale Capital argues that after the adoption of several bitcoin ETFs this year, there may be little reason left for investors to trade microstrategy stocks to gain exposure to bitcoin.
“Long are the days when microstrategy shares represented an unconventional and unique way to access bitcoin,” Kerisdale Capital explained in a March 28 analyst note.
Recently, Cointelegraph reported that MSTR has significantly outperformed Bitcoin over the past twelve months. The stock has increased approximately 469% in the past year, meanwhile, Bitcoin has increased 168% in the same period.
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This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
