Major bank increases MicroStrategy stake by 25%, adds $350M despite record short interest
A leading global bank raised its MicroStrategy stake by 25% to roughly 1.2 million shares, adding positions worth $350 million, even as shorts hit a two-year high. Short interest in the company climbed to 22% of the float, marking the highest level since early 2024 and intensifying volatility around shares.
1. Bank Raises MicroStrategy Position
In early February, a top-tier financial institution boosted its stake in MicroStrategy by 25%, taking its total holdings to approximately 1.2 million shares valued at about $350 million. This move reflects confidence in the company’s Bitcoin-centric strategy after recent share fluctuations.
2. Record Short Interest Squeezes Shares
Short interest surged to 22% of the outstanding float, the highest level since January 2024, as bearish bets targeted the stock’s volatility. The elevated short positions have coincided with intraday swings exceeding 8% over the past three weeks.
3. Market Reaction and Outlook
Following the stake increase and mounting short pressure, MicroStrategy shares have seen average daily volumes jump by 40%, indicating heightened investor engagement. Analysts suggest the bank’s move could anchor sentiment and temper volatility if it holds these shares through upcoming Bitcoin price swings.