Despite a slight decrease in overall bearish sentiment, multiple institutions still hold short positions worth $6.9 billion against the publicly listed software developer MicroStrategy.
MicroStrategy continues to face bearish pressure
Bearish confidence weakening
Data from Fintel shows that as of June 6, institutions collectively hold 18 short positions against MicroStrategy, with the largest one worth approximately $2.4 billion, totaling about $6.9 billion in bets that MicroStrategy will face a decline.
By contrast, this accounts for nearly 1/4 (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 United States is held by the SPDR S&P 500 ETF, totaling $114.06 billion.
Previously, the short investment firm Kerrisdale Capital released a research report in March this year, stating that compared to Bitcoin, MicroStrategy was significantly overvalued and that buying MicroStrategy as a way to gain Bitcoin exposure after the launch of a Bitcoin spot ETF would not be sustainable. Kerrisdale Capital’s bearish sentiment led to an 11% drop in MicroStrategy’s stock price.
Although specific institutions are betting on a decline in MicroStrategy’s stock price, bearish confidence has noticeably weakened. The short interest ratio for 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 days, the lower the interest of short sellers.
Data shows that MicroStrategy’s stock price nearly halved (-47.91%) in March and April, but has still seen an increase of nearly 4 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.