Many Institutions Still Waiting for MicroStrategy Intelligence Stock Price to Drop

Many institutions are still waiting for the stock price of MicroStrategy, Michael Saylor’s software intelligence company, to decline, with $6.9 billion in large short positions.

However, the resolve of short sellers appears to be weakening, as the price has almost tripled in six months.

As of June 6, MicroStrategy had 18 short positions listed on investment research firm Fintel’s “The Big Shorts” list – a list of the largest short positions disclosed by institutions to the SEC.

The largest position, at approximately $2.4 billion, is also the 27th largest net short position among institutions.

That’s just $1 billion less than Amazon’s highest net short position, which was $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) at $114.06 billion.

In October 2022, MicroStrategy’s “days to cover” stock price increased to 5.80 days. Source: Marché Beat

Although some institutions are betting on MicroStrategy’s decline, short seller confidence has declined noticeably. Short interest in MicroStrategy stock has decreased by about 50% over the past six months, from 3.1 days to 1.5 days.

This popular indicator helps traders analyze short selling risk by showing the average number of days short sellers need to close their positions. The lower the number of days, the lower the short seller’s interest.

According to Google Finance data, MTSR price has been rising since December 2023, when it started at $570, and has since tripled to $1,656.

MicroStrategy stock price is up 30.57% over the past 30 days. Source: Google Finance

This comes just months after crypto-skeptical investment firm Kerrisdale Capital reduced shares of MicroStrategy following the launch of its Bitcoin (BTC) spot trading funds (ETF) this year.

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Kerrisdale Capital has claimed there may be no reason for investors to trade MicroStrategy shares to gain exposure to Bitcoin after the approval of several Bitcoin exchange-traded funds this year.

“The days when MicroStrategy shares represented a rare and unique way to access Bitcoin are long gone,” Kerrisdale Capital explained in a March 28 analyst note.

Most recently, Cointelegraph reported that MSTR had significantly outperformed Bitcoin over the past 12 months. The stock is up about 469% over the past year, and at the same time, the price of Bitcoin is up 168% over the same period.

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.

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