Strategy Stock Experiences $180 Million in Failed Trades Indicating Short Squeeze Potential
Short sellers of Strategy (MSTR) face challenges as the stock's price increased by 13% in March, complicating their ability to repay borrowed shares. Key points include:
- Over $180 million in MSTR trades failed to settle last month, indicating potential difficulties for short sellers.
- Failures to Deliver (FTDs) reached 609,000 shares in March, with a peak on March 26 when over 186,465 shares, worth nearly $64 million, failed to deliver.
- As of April, approximately 29 million shares are sold short, representing over 12% of available shares.
- One-third of trades on April 22 were off-exchange short sales, complicating tracking of short-selling activity.
- MSTR stock has gained 35% since early March and rallied 8% recently, potentially leading to a short squeeze as sellers may need to buy back shares.
- The significant number of FTDs raises the possibility of a market move driven by short sellers.
