Short Sellers Bet Big, But Lose Confidence
Investors who bet against MicroStrategy, a software company led by Bitcoin enthusiast Michael Saylor, are facing losses as the company’s stock price has soared. These “short sellers” have sold $6.9 billion worth of MicroStrategy shares, hoping the price would drop so they could buy them back at a lower price.
However, MicroStrategy’s stock (MSTR) has risen by over 190% in the past six months, defying the short sellers’ expectations. This has left them with expensive short positions that could lead to significant losses if the stock continues to rise.
MicroStrategy’s Biggest Short Position
According to data from Fintel, the largest short position against MicroStrategy is worth approximately $2.4 billion. This position is also the 27th largest short position among all institutions.
Michael Saylor’s Bitcoin Bets
While short sellers have been betting against MicroStrategy, Saylor has been making large bets on Bitcoin. In January 2024, he sold MicroStrategy shares to buy more Bitcoin. MicroStrategy now holds over 214,400 Bitcoin, making it the largest Bitcoin holder among public companies.
MicroStrategy Stock Price Update
Despite the short sellers’ bets, MicroStrategy’s stock price has continued to rise. As of writing, MSTR is trading at $1,656.63, up over 469% in the past year.
