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Big shorters have placed significant bets on Michael Saylor’s business intelligence and software firm, MicroStrategy, <a href="https://bitcoinist.com/750-million-bitcoin-microstrategy-stock-sale/">selling stocks</a> worth approximately $6.9 billion. Despite the substantial short positions, <a href="https://bitcoinist.com/microstrategy-shifts-focus-to-bitcoin-development/">MicroStrategy</a> stocks (MSTR), have continued to rise, outperforming investor expectations.&nbsp; 
<h2 id="microstrategy-big-shorters-lose-confidence">MicroStrategy Big Shorters Lose Confidence</h2> 
<a href="https://www.newsbtc.com/news/bitcoin/michael-saylor-bitcoin-1-million/" rel="nofollow noopener" target="_blank">MicroStrategy</a> short sellers are currently losing confidence as the price of <a href="https://bitcoinist.com/analyst-bitcoin-a-better-option-than-mstr-stock/">MSTR stocks</a> has skyrocketed over the past six months. The software intelligence firm currently holds a staggering $6.9 billion in short positions, constituting 23.14% of its <a href="https://companiesmarketcap.com/microstrategy/marketcap/" rel="nofollow noopener" target="_blank">market capitalization</a> of nearly $30 billion.&nbsp; 
<a href="https://bitcoinist.com/bitcoin-short-sellers-bet-against-crypto-stock/">Short selling</a> is a trading strategy where investors speculate on a stock’s potential decline. These investors, typically called shorters, borrow shares and sell them in the hopes that they will fall and then buy them back again at a lower price to take profits.&nbsp; 
In the context of MicroStrategy, the company’s stocks have not witnessed a significant decline since the beginning of the year. To be precise, <a href="https://www.newsbtc.com/bitcoin-news/microstrategy-stock-surges-as-berenberg-highlights-bitcoin-halvings/" rel="nofollow noopener" target="_blank">MSTR stocks have risen</a> by approximately 190.08% over the past six months.&nbsp; 
Numerous institutions are still hoping for a <a href="https://bitcoinist.com/spot-bitcoin-etf-microstrategy-may-suffer/">decline in MSTR’s price</a> to enable them to generate profits. The high stakes and substantial capital involved in shorting MicroStrategy could pose a risk to several <a href="https://bitcoinist.com/microstrategy-billion-dollar-bitcoin-bet/">investors</a> if the price of the stock does not plummet.&nbsp; 
Moreover, the tripling of MSTR stock value from $570 in December to $1,656 has made current short positions incredibly expensive. If the company continues to record more gains in its stock prices, short sellers may be put in a precarious position, potentially forcing many to exit their trades early to avoid bigger losses.&nbsp; 
Fintel, a financial data and intelligence provider has <a href="https://fintel.io/bigShorts" rel="nofollow noopener" target="_blank">revealed</a> a big short list, outlining the largest short positions disclosed by institutions to the <a href="https://bitcoinist.com/bitcoin-bull-michael-saylor-wants-sec-to-corral-crypto-herd-eth-ada-sol-in-the-crosshairs/">United States Securities and Exchange Commission (SEC)</a>. According to the data, MicroStrategy’s biggest net short position holds approximately $2.4 billion.&nbsp; 
MSTR’s big short position is also the 27th largest amongst other institutions. SPDR S&amp;P 500 ETF Trust currently ranks first, holding more than $114 billion in net shorts.&nbsp; 
<h2 id="microstrategy-stock-price-update">MicroStrategy Stock Price Update</h2> 
Short sellers have not been the only investors making big bets, as MicroStrategy founder and former Chief Executive Officer (CEO), Michael Saylor has been making <a href="https://bitcoinist.com/microstrategy-michael-saylor-400m-from-bitcoin/">substantial wagers on Bitcoin</a> for the past few years.&nbsp; 
Earlier in January 2024, Saylor revealed he was <a href="https://bitcoinist.com/microstrategy-saylor-buy-bitcoin/">selling shares</a> to buy more Bitcoin. This decision comes after numerous <a href="https://www.newsbtc.com/bitcoin-news/microstrategy-buys-more-bitcoin-much-profit-holds/" rel="nofollow noopener" target="_blank">Bitcoin acquisitions</a>, positioning MicroStrategy as the top Bitcoin holder amongst public companies, according to CoinGecko. As of May 1, 2024, the software firm <a href="https://bitcointreasuries.com/microstrategy/#:~:text=MicroStrategy%20owns%20214,400%20bitcoins%20as,cost%20of%20$7.538%20billion%20USD." rel="nofollow noopener" target="_blank">owned</a> a staggering 214,400 BTC, valued at $15.2 billion, and accounting for more than <a href="https://bitcoinist.com/microstrategy-1-of-all-bitcoin/">1% of Bitcoin’s total circulating supply</a>.&nbsp; 
Moreover, in one year, MSTR stocks have risen by more than 469.66%, fueling a price increase to $1,656.63, as of writing. Google Finance <a href="https://www.google.com/finance/quote/MSTR:NASDAQ?hl=en&amp;window=1M" rel="nofollow noopener" target="_blank">data</a> has disclosed that the stock value is still appreciating. In the last five days, MSTR is up by 3.67% and 31.75% over the past month.&nbsp; 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/665sq1VG/" alt="Bitcoin price chart from Tradingview.com (MicroStrategy)" width="3286" height="1576">

Big Shorters Bet $6.9 Billion Against Pro-Bitcoin MicroStrategy, How Are They Faring?

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