$6.9 Billion in Short Positions Target MicroStrategy Stocks

Michael Saylor’s MicroStrategy Stock is in the crosshairs of eagle-eyed short traders as Bitcoin shorts stack up amid BTC price resistance.

MicroStrategy’s stock has become a prime short target with $6.9B betting against it, but as of now, no one’s sweating it.

By June 6, it had 18 massive shorts on Fintel’s list, totaling $6.9 billion. The largest short bet was around $2.4 billion, ranking 27th among institutional investors.

Yet, Michael Saylor’s firm is defying the odds, with its stock price soaring.

A Stunning Rally For MicroStrategy Stock in Recent Months

MicroStrategy’s stock has been on a tear since December 2023. From $570, it’s shot up to $1,656 by June 6, 2024.

In the last 30 days alone, it’s jumped 30.57%, showing strong investor confidence.

According to BitcoinTreasuries, companies now hold just under 1.5% of the total 21 million BTC supply. 📈

1️⃣ MicroStrategy > 214,400 BTC
2️⃣ Marathon Digital Holdings Inc. > 17,631 BTC
3️⃣ Tesla > 9,720 BTC
4️⃣ Hut 8 Mining Corp. > 9,109 BTC
5️⃣ Riot Platforms, Inc. > 9,084 BTC
6️⃣… pic.twitter.com/0mNADIfBuB

— Nfinity Labs (@NfinityLabs) June 7, 2024

Despite the rally, skeptics like Kerrisdale Capital argue that the 2024 approval of several spot Bitcoin ETFs undercuts MicroStrategy’s unique value as a Bitcoin proxy.

“The days when MicroStrategy shares represented a rare, unique way to gain access to Bitcoin are long over,” stated Kerrisdale Capital in a March 28 analyst note.

Ironically enough, over the past year, MicroStrategy has outperformed Bitcoin’s 168% rise with a 469% climb of its own. According to analysts at MarketBeat, short interest in MicroStrategy has halved from 3.1 days to 1.5 days in six months.

DISCOVER: How to Buy Bitcoin ETF in June 2024

Future Outlook For Bitcoin And MicroStrategy Over The Summer

The U.S. Federal Reserve’s potential rate cuts and next week’s CPI report are key areas of interest for Bitcoin and MicroStrategy.

Support for Bitcoin at $70,000 and $68,500 remains solid, while resistance challenges are $72,000 and $73,500. The 20-day SMA at $71,438 and 200-day SMA at $71,026 signal upward momentum

(BTCUSDT)

Bollinger Bands show BTC’s price moving around the middle band, pointing to market stability.

Bitcoin is poised for potential gains if it breaks through resistance. Watch those key levels for the next big move.

EXPLORE: VanEck Sees Ethereum Soaring To $22,000 by 2030: Here’s Why

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

Disclaimer

Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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