MSTR - Why did Microstrategy fall today? Traders book profits

2023-04-14 17:40:44 ET

• MicroStrategy ( NASDAQ: MSTR ) fell as much as 4.6% on Friday, before paring losses to end 2.1% lower, in higher than normal trading volume in a bout of profit booking.
• The stock, which has high short interest well above 30%, has more than doubled in value YTD, tracking broader gains in the cryptocurrency market.
• "MSTR shorts are down -$677M in YTD mark-to-market losses," said S3 Partners' Ihor Dusaniwsky. "There is not much stock borrow left in MSTR to support a large amount of new short selling with 92% of stock borrows already taken down."
• He noted that since stock borrow was limited, there may be some new short selling pressuring the stock. "But today's price move is more likely due to long selling."
• Earlier, MicroStrategy ( MSTR ) paid off a $205M loan it had with Silvergate Capital ( SI ) two years early.

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