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Several institutions are still holding out for a decline in the stock price of Michael Saylor’s software intelligence firm MicroStrategy, with $6.9 billion in major short positions.&nbsp;
However, the short-seller almost tripled in six months.
As of June 6, MicroStrategy has 18 short positions listed on investment research firm Fintel’s “The Big Shorts” <a href="https://fintel.io/bigShorts" target="_blank" rel="noopener nofollow">list</a> — which is a list of the largest short positions disclosed by institutions to the United States Securities and Exchange Commission.
The biggest position, approximately $2.4 billion, is also the 27th-largest net short position among institutions.
It is just over a billion less than Amazon’s highest net short position of $3.59 billion. The biggest net short position in the U.S. is on the SPDR S&amp;P 500 Trust exchange-traded fund (ETF), which is $114.06 billion.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/5fa0611d-4d3e-468a-8c00-6f7a60a0d056.png" alt="" title="">
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 In October 2022, MicroStrategy’s stock price “days to cover” went as high as 5.80 days. Source: MarketBeat
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Despite some institutions betting on a MicroStrategy fall, there’s been a marked decrease in short-seller confidence. The short-interest ratio for MicroStrategy’s stock has decreased by nearly 50% over the last six months, from 3.1 days to 1.5 days.&nbsp;
The popular indicator helps traders analyze the risk of a short squeeze by indicating the average number of days short sellers need to close their positions.&nbsp;The lower the number of days, the less short-seller interest.
<a href="https://www.google.com/finance/quote/MSTR:NASDAQ?sa=X&amp;ved=2ahUKEwiOlI-rsciGAxVfSWwGHR5wGMAQ3ecFegQIIxAX" target="_blank" rel="noopener nofollow">According</a> to Google Finance data, MicroStrategy stock has rallied since December 2023, when it started at $570 and has since tripled to $1,656.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/dd938ccc-3427-4e24-8290-9bf3e65c9bd7.png" alt="" title="">
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 MicroStrategy’s stock price is up 30.57% over the past 30 days. Source: Google Finance
 </figcaption>
</figure>
It comes only months after crypto-skeptic investment firm Kerrisdale Capital put pressure on MicroStrategy shares following the launch of spot Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) exchange-traded funds (ETF) in 2024.
Related: <a href="https://cointelegraph.com/news/microstrategy-michael-saylor-40m-tax-settlement">MicroStrategy and Michael Saylor settle tax case for $40M</a>
Kerrisdale Capital argued that <a href="https://cointelegraph.com/news/microstrategy-michael-saylor-trading-at-premium-bitcoin-kerrisdale-capital">there may be little reason left for investors</a> to trade MicroStrategy stocks to gain exposure to Bitcoin after the <a href="https://cointelegraph.com/news/sec-spot-bitcoin-etf-approvals">approval of several spot Bitcoin ETFs this year.</a>
“The days when MicroStrategy shares represented a rare, unique way to gain access to Bitcoin are long over,” Kerrisdale Capital explained in a March 28 analyst note.
More recently, Cointelegraph reported that MicroStrategy has significantly outperformed Bitcoin over the past twelve months. The stock is up <a href="https://cointelegraph.com/news/microstrategy-stock-bitcoin-mstr-tesla-stock-short-term">approximately 469% over the past year</a>, with Bitcoin up 168%.
Magazine: <a href="https://cointelegraph.com/magazine/bali-indonesia-crypto-digital-nomad-remote-work-cointelegraph-magazine/">Become a Bali crypto digital nomad like me: Here’s how</a>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Big shorters are betting $6.9B against MicroStrategy stocks

Cointelegraph

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