Many institutions are still expecting the stock price of Michael Saylor's software company MicroStrategy to fall, with large short positions worth $6.9 billion.

However, the resolve of short sellers appears to be waning, with the stock price almost tripling in the past six months.

As of June 6, MicroStrategy had 18 short positions listed on investment research firm Fintel's "The Big Shorts" list – the largest list of short positions published by institutions for SEC.

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

This is just $1 billion less than Amazon's highest net short position, which was worth $3.59 billion. Overall, the largest net short position in the United States is on the SPDR S&P 500 Trust exchange-traded fund (ETF), totaling $114.06 billion.

In October 2022, MicroStrategy's “days to cover” stock price reached 5.80 days | Source: MarketBeat

Although some institutions bet on a drop in MicroStrategy, there has been a significant decrease in short-seller confidence. Short interest in MicroStrategy stock has dropped nearly 50% over the past six months, from 3.1 days to 1.5 days.

This popular index helps traders analyze the risk of a short squeeze by showing the average number of days it takes short sellers to close their positions. The smaller the number, the lower the interest of short sellers.

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

MicroStrategy's stock price has increased 30.57% in the past 30 days | Source: Google Finance

This comes just months after cryptocurrency-skeptical investment firm Kerrisdale Capital put short pressure on MicroStrategy stock following the launch of spot Bitcoin ETFs this year.

Kerrisdale Capital argues that there may no longer be much reason for investors trading MicroStrategy shares to gain exposure to Bitcoin after several spot Bitcoin ETFs were approved this year.

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

MSTR stock has outperformed Bitcoin significantly over the past twelve months. The stock is up about 469% over the past year, while Bitcoin is up 168% over the same period.

Source: https://tapchibitcoin.io/nhung-tay-to-ban-khong-dang-dat-cuoc-69-ty-usd-chong-lai-co-phieu-microstrategy.html