MSTR is the most shorted stock in the United States. Looking at data from FactSet and Goldman Sachs, about 14% of its market capitalization of $34 billion is held in short positions. That's a pretty high number.

The main reason for such a high level of shorting seems to be a basic trade strategy. In short, it involves buying a Bitcoin spot ETF like BlackRock's iBit while simultaneously shorting MSTR stock, adjusting the risk-reward ratio to aim for profit. There were recent reports that Jane Street bought a large amount of iBit, and behind that, there are probably these kinds of trades.

MSTR holds 717,722 bitcoins, worth about $47 billion. Meanwhile, despite the stock price dropping 20% since the beginning of the year, iBit has fallen 27%. So, the ratio of MSTR to iBit has increased by about 12%. In other words, this trade hasn't been successful yet. If the increase in short positions is truly for basic trade purposes, we might see some changes in the movement soon.