Viral Claim Accusing JPMorgan of Short Selling MSTR Collapses as Documents Reveal Zero Short Positions
- Did JPMorgan Really Short MicroStrategy?
- What Did JPMorgan Actually Do with MSTR?
- How Does MSTR’s Short Interest Compare to GameStop?
- Who’s Quietly Betting Big on Bitcoin Instead?
- Why Does This Misinformation Matter?
- FAQ: Unpacking the JPMorgan-MicroStrategy Drama
A viral narrative accusing JPMorgan of shorting MicroStrategy (MSTR) unraveled after SEC filings exposed the truth: the bank held no short positions. Meanwhile, institutional players like Harvard and Abu Dhabi’s Al Warda quietly doubled down on bitcoin ETFs, signaling a stark contrast between social media frenzy and cold, hard data. Here’s how the drama unfolded—and why the facts matter more than ever in 2024’s volatile market.
Did JPMorgan Really Short MicroStrategy?
Social media erupted in late November 2024 with claims that JPMorgan was aggressively shorting MicroStrategy (MSTR), drawing comparisons to the GameStop saga. Users demanded a “buy the dip” campaign, while influencers warned of an imminent short squeeze. But SEC filings from November 7 told a different story: JPMorgan’s 13F-HR report showedin MSTR. The document, publicly available, was buried under layers of misinformation. By November 25, the false narrative had spread like wildfire, while the truth languished in plain sight.
What Did JPMorgan Actually Do with MSTR?
The 13F-HR filing revealed JPMorganin MicroStrategy by 772,453 shares (a 24.54% cut) but held call options tied to 202,200 shares (~$65M) and put options on 363,000 shares (~$117M). Critics latched onto the puts as “proof” of a bearish bet—ignoring context. Those puts represented justof JPMorgan’s $4.6 trillion assets under management. As the BTCC research team noted, “This is standard hedging for a bank of this scale, not a ‘YOLO’ short play.” Unlike naked shorting, put options cap losses at the premium paid, making the risk incomparable to the infinite losses possible in short selling.
How Does MSTR’s Short Interest Compare to GameStop?
FINRA data showed MSTR’s short interest at 9.74% of float (25.28M shares) as of October 31—nowhere NEAR GameStop’s 140% peak in 2021. GameStop’s squeeze was fueled by rehypothecation (loaning the same shares multiple times), a structure absent here. MSTR’s float is also 4× larger (259M shares vs. GameStop’s 70M), making retail-driven price surges harder to engineer. “The math simply doesn’t support a GameStop 2.0,” remarked a TradingView analyst.
Who’s Quietly Betting Big on Bitcoin Instead?
While Twitter debated phantom shorts, institutional players made concrete moves:
- Harvard University boosted its iShares Bitcoin Trust (IBIT) holdings by 257% to 6.81M shares ($442.8M)—now its largest disclosed equity position, surpassing Microsoft and Nvidia.
- Al Warda Investments (Abu Dhabi-backed) increased IBIT exposure by 230% to $517.6M.
- Emory University added 91% more Grayscale Bitcoin Mini Trust shares, totaling $42.9M.
U.S. spot Bitcoin ETFs have absorbed $60.8B inflows since January 2024 approval, per CoinMarketCap data.
Why Does This Misinformation Matter?
False narratives can distort markets. In this case, the “JPMorgan short” myth diverted attention from real trends: institutional Bitcoin adoption and MSTR’sshort interest dynamics. As one Reddit user quipped, “This wasn’t due diligence—it was ‘dude’ diligence.” The episode underscores the importance of verifying data with primary sources like SEC filings rather than viral posts.
FAQ: Unpacking the JPMorgan-MicroStrategy Drama
Did JPMorgan hide its short positions in MSTR?
No. SEC Rule 13F-HR filings are legally binding disclosures. JPMorgan reported no short positions; the puts were routine hedging.
Could MSTR still face a short squeeze?
With short interest at 9.74% (vs. GameStop’s 140%), a squeeze is improbable without extreme buying pressure.
Why are universities buying Bitcoin ETFs?
Endowments like Harvard’s diversify into crypto for uncorrelated returns. IBIT’s low fees (0.12%) and BlackRock’s reputation likely appealed to them.
