JPMorgan Raises MicroStrategy Stake 15% to $1.4B as Short Interest Hits 47%
JPMorgan raised its MicroStrategy stake by 15% to 2.5 million shares, valuing its position at roughly $1.4 billion for the quarter. Short interest on MicroStrategy jumped to a record 47% of its float in February, marking unprecedented bearish pressure on the stock.
1. Bank Increases Stake
JPMorgan boosted its holdings in MicroStrategy by 15% during the latest quarter, acquiring an additional 330,000 shares to bring its total to approximately 2.5 million shares, valued at about $1.4 billion based on recent prices. This marks one of the largest institutional purchases of MicroStrategy in recent quarters.
2. Short Interest Reaches New High
Short interest in MicroStrategy soared to 47% of its available float by the end of February, the highest level on record. Bears have ramped up wagers against the company as Bitcoin volatility and rising interest rates challenge its leveraged crypto strategy.
3. Potential Stock Impact
The bank’s sizable purchase could signal confidence in MicroStrategy’s long-term strategy, potentially providing support for the share price. However, the unprecedented level of short selling creates heightened volatility and downside risk if bearish traders press their positions further.