Will MSTR Stock’s Record Short Interest Trigger a Short Squeeze?

Strategy (formerly MicroStrategy), the business intelligence firm and the largest public holder of Bitcoin (BTC), has recorded a new all-time high (ATH) in quarterly short interest.

Analysts remain split on what this means for the price of MSTR. Some believe the ATH in short interest could be a precursor to a short squeeze. Meanwhile, others argue that it may reflect market makers hedging their positions in derivatives.

MSTR Stock Short Interest Hits Record High

For context, short interest refers to the total number of shares of a stock that investors have borrowed and sold in anticipation that the stock price will decline. A rise in short interest typically signals growing pessimism about a company’s prospects. 

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