51% of the world’s largest listed companies holding bitcoin are shorted | Investing.com

51% of the world’s largest listed companies holding bitcoin are shorted | Investing.com

Shares of MicroStrategy Inc (NASDAQ: ), the world’s largest publicly traded company with bitcoin holdings, are at a record 51%, and investors skeptical of the company’s bitcoin strategy believe the stock’s recent rally won’t last long .

Short positions in MicroStrategy represent a record 51% of shares outstanding, with a notional value of $1.35 billion, according to financial analytics firm S3 Partners. Short selling on the stock has surged by 1.2 million shares in the past 30 days alone to an all-time high of 4.73 million shares, S3 said.

As of June 28, MicroStrategy held about 129,699 bitcoins in MicroStrategy, and the purchase cost of these bitcoins was $3.98 billion, or about $30,664 per coin on average. The company’s founder and CEO Michael Thaler is one of bitcoin’s biggest bulls, believing the cryptocurrency will one day hit $6 million apiece. He has said several times that he will not sell any bitcoin, even in the face of a prolonged bear market.


Shares in the tech company, which is used as a vehicle for investing in bitcoin, have fallen by more than three-quarters from their February 2021 peak. Its shares haven’t closed above their 200-day moving average since December, even though the current price has rallied 73% from its late June lows.

S3 director Matthew Unterman said short interest in MicroStrategy shares rose by 680,000 shares over the past seven days, suggesting “short sellers are clearly taking advantage of the recent strength to sell.”

MicroStrategy will report second-quarter results after the U.S. stock market closes on Tuesday. The stock fell 3.6% to close at $275.74 on Monday, snapping a three-session winning streak.


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