The big shorts have made significant bets on Michael Saylor's software and business intelligence firm, MicroStrategy, selling shares for an approximate value of 6.9 billion dollars. Despite significant short positions, Microstrategy Shares (MSTR) have continued to rise, exceeding investor expectations.
MicroStrategy's big bears lose confidence
bitcoin/michael-saylor-bitcoin-1-million/” rel=”nofollow noopener” target=”_blank”>Microstrategy Short sellers are currently losing confidence as the price of MSTR Stock has skyrocketed in the last six months. The software intelligence firm currently holds a staggering $6.9 billion in short positions, making up 23.14% of its market capitalization of almost 30 billion dollars.
Short sale It is a trading strategy in which investors speculate on the possible fall of a stock. These investors, usually called short sellers, borrow stocks and sell them in the hope that they will fall and then buy them back at a lower price to make a profit.
In the context of MicroStrategy, the company's shares have not seen a significant drop since the beginning of the year. To be precise, bitcoin-news/microstrategy-stock-surges-as-berenberg-highlights-bitcoin-halvings/” rel=”nofollow noopener” target=”_blank”>MSTR Stock Is Up by approximately 190.08% in the last six months.
Many institutions are still waiting for a MSTR price drop so they can generate profits. The high risks and substantial capital involved in shorting MicroStrategy could pose a risk to several investors if the stock price doesn't plummet.
Additionally, the tripling of MSTR stock's value from $570 in December to $1,656 has made current short positions incredibly expensive. If the company continues to post further gains in its share prices, short sellers may be left in a precarious position, potentially forcing many to exit their trades early to avoid further losses.
Fintel, a financial data and intelligence provider, has revealed a large short list, which describes the largest short positions disclosed by institutions at United States Securities and Exchange Commission (SEC). According to the data, MicroStrategy's largest net short position is approximately $2.4 billion.
MSTR's large short position is also 27th among other institutions. SPDR S&P 500 ETF Trust is currently in first place, with more than $114 billion in net short positions.
MicroStrategy Stock Price Update
Short sellers haven't been the only investors making big bets, as MicroStrategy founder and former chief executive officer (CEO) Michael Saylor has been doing. substantial bets on bitcoin During the last years.
In early January 2024, Saylor revealed that he was Sell shares to buy more bitcoin. This decision comes after numerous bitcoin-news/microstrategy-buys-more-bitcoin-much-profit-holds/” rel=”nofollow noopener” target=”_blank”>bitcoin acquisitions, positioning MicroStrategy as the top bitcoin holder among public companies, according to CoinGecko. Starting May 1, 2024, the software company property the staggering figure of 214,400 btc, valued at $15.2 billion, and representing more than 1% of the total circulating supply of bitcoin.
Furthermore, in one year, MSTR stock has risen by over 469.66%, leading to a price surge to $1,656.63, at the time of writing. Google Finance data has revealed that the value of the shares is still appreciating. In the last five days, MSTR is up 3.67% and 31.75% from last month.
Featured image created with Dall.E, chart from Tradingview.com
