Multiple institutions are maintaining their pessimistic stance on the stock price of MicroStrategy, the software intelligence company founded by Michael Saylor, with significant short positions totaling $6.9 billion.
Despite this, the number of short positions has nearly tripled in just six months. As of June 6, MicroStrategy is listed in 18 short positions on Fintel’s “The Big Shorts” list, which showcases the largest disclosed short positions by institutions to the United States Securities and Exchange Commission.
The largest short position, valued at around $2.4 billion, ranks as the 27th largest net short position among institutions. It falls just short of Amazon’s highest net short position of $3.59 billion. The SPDR S&P 500 Trust exchange-traded fund (ETF) holds the largest net short position in the U.S., standing at $114.06 billion.
In October 2022, MicroStrategy’s stock price “days to cover” peaked at 5.80 days. Despite some institutions betting against MicroStrategy, there has been a noticeable decline in short-seller confidence. The short-interest ratio for MicroStrategy has dropped by almost 50% over the past six months, from 3.1 days to 1.5 days.
This indicator assists traders in assessing the risk of a short squeeze by revealing the average number of days required for short sellers to close their positions. A lower number of days indicates less short-seller interest.
According to Google Finance data, MicroStrategy’s stock price has surged since December 2023, starting at $570 and currently standing at $1,656.
Over the past 30 days, MicroStrategy’s stock price has increased by 30.57%. This positive trend comes shortly after Kerrisdale Capital, a firm skeptical of cryptocurrencies, exerted pressure on MicroStrategy shares following the introduction of spot Bitcoin (BTC) exchange-traded funds (ETF) in 2024.
Kerrisdale Capital argued that the approval of multiple spot Bitcoin ETFs this year may diminish the appeal of trading MicroStrategy stocks to gain exposure to Bitcoin. The firm stated in a March 28 analyst note that the days of MicroStrategy shares serving as a unique gateway to Bitcoin are long gone.
Recent reports indicate that MicroStrategy has significantly outperformed Bitcoin over the past year, with the stock soaring approximately 469%, compared to Bitcoin’s 168% rise.
Please note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risks, and readers are advised to conduct their own research before making any decisions.