CDS Crypto News MicroStrategy Bitcoin Investment Triumphs, Shorts Stung with 2B Dollars Loss
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MicroStrategy Bitcoin Investment Triumphs, Shorts Stung with 2B Dollars Loss

MicroStrategy's stock, MSTR, has outperformed even the price of BTC itself, skyrocketing by 180% year-to-date.

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MicroStrategy Bitcoin Investment Triumphs, Shorts Stung with 2B Dollars Loss

Crypto News– MicroStrategy Bitcoin investment triumphs: MicroStrategy, renowned for its assertive Bitcoin (BTC) approach, has witnessed a surge in its stock price in recent months, coinciding with the crypto asset’s ascent to a new all-time high last month. Nonetheless, short sellers are banking on the stock being overvalued and anticipating a future decline.

MicroStrategy Bitcoin Investment Triumphs, Shorts Stung with 2B Dollars Loss

As per Reuters’s Wednesday report, citing data from S3 Partners, a leading financial data marketplace in the United States, short sellers who bet against the business intelligence company have incurred a collective loss of $1.92 billion as of March 2024.

Bitcoin is up over 7% in late-day trading and up almost 12% since its recent low three days ago, and as a result, crypto-related stock short sellers have incurred -$1.92 billion to their year-to-date mark-to-market losses today.

S3 Partners 

MicroStrategy and Coinbase Take the Lead

The performance of MicroStrategy’s MSTR has exceeded even that of BTC itself, with a staggering 180% surge year-to-date. This surge has resulted in losses for investors who bet against the business intelligence firm.

Similarly, Coinbase, one of the largest crypto exchanges globally, has also drawn significant short-term interest as investors scrutinize its valuation. Traders betting against the US-based exchange, which went public in April 2021, have also suffered losses totaling $593.50 this year.

According to S3 Partners, short interest in stocks related to digital assets has reached a total of $10.7 billion, with MicroStrategy’s MSTR and Coinbase’s COIN contributing to 84% of the total loss.

Other crypto firms experiencing substantial losses include BTC mining company CleanSpark. Short traders who bet against the firm’s stock, CLSK.O, incurred losses of $106.40 million, according to data from S3 Partners.

Crypto Short Sellers Surpass Traditional Stocks

The notable short interest reflects a bearish sentiment surrounding these stocks despite the recent surge in the crypto market.

According to S3 Partners data, the short interest % float in the digital asset sector is more than three times larger than the US average of 5.13%.

The company noted that the elevated level of short interest implies widespread investor belief that these stocks are overvalued and ripe for a correction. However, it also opens the door to a potential short squeeze scenario, where short sellers are compelled to repurchase shares at a higher price, further propelling the stock price upward.

Investors are cautioned to consider the risks associated with short selling, as it can lead to substantial losses if the stock price increases instead of decreases.

MicroStrategy Bitcoin Investment Triumphs, Shorts Stung with 2B Dollars Loss

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