MicroStrategy reduces short position by 69 billion nearly a quarter of market value
Despite a slight decrease in overall bearish sentiment, multiple institutions still hold a $6.9 billion short position on the publicly traded software developer MicroStrategy.
MicroStrategy Continues to Face Bearish Pressure
Decrease in Bearish Confidence
Fintel’s data on major short positions shows that as of June 6th, institutions collectively hold 18 short positions on MicroStrategy, with the largest one being around $2.4 billion, totaling approximately $6.9 billion in bets on MicroStrategy facing a decline.
For comparison, this accounts for nearly one-fourth (23.4%) of MicroStrategy’s market value of $29.384 billion, while Amazon’s largest net short position is $3.59 billion, and the largest net short position in the US is the S&P 500 ETF under SPDR, amounting to $114.06 billion.
Prior reports indicated that the short investment firm Kerrisdale Capital released a research report in March this year, stating that MicroStrategy was significantly overvalued compared to Bitcoin, and that buying MicroStrategy to gain Bitcoin exposure after the launch of Bitcoin spot ETF would be a thing of the past, emphasizing that the era of MicroStrategy’s so-called “Bitcoin strategy” has come to an end.
( MicroStrategy’s stock price plunged 11% as the short-selling institution Kerrisdale Capital criticized it )
Although specific institutions are betting on a drop in MicroStrategy’s stock price, bearish confidence has also significantly weakened. The short interest ratio of MicroStrategy’s stock has decreased by nearly 50% over the past six months, from 3.1 days to 1.5 days.
This indicator helps traders analyze the risk of short squeezes, showing the average number of days needed for short sellers to close their positions. The fewer the days, the lower the interest of short sellers.
Short Interest data shows that MicroStrategy’s stock price nearly halved in March and April (-47.91%), but has still risen nearly four times (277.59%) since mid-January.
Over the past year, MicroStrategy has risen by approximately 469%, while Bitcoin has risen by 168% during the same period.
