- The Bitcoin and crypto community’s call to boycott JPMorgan intensifies as they uncover the bank’s massive short position on Strategy.
- A financial commentator claimed that JPMorgan’s short position in MSTR was so large that a 50% pump in the Bitcoin development company’s stock could bankrupt it.
The crypto community recently uncovered that JPMorgan has placed a massive short position in Strategy (MSTR) stocks. Now, they want blood and are calling for a boycott on the giant American multinational banking institution.
JPMorgan’s Huge Bet Against Strategy
Bitcoin (BTC) is no stranger to JPMorgan CEO Jamie Dimon’s tirades. However, the big bank has finally drawn the battle lines in its latest push against the largest player in the crypto space, Strategy.
The crypto community was fuming heading into Monday as Max Keiser, an American broadcaster, filmmaker, and financial commentator, unveiled JPMorgan’s “existentially threatening short” in MSTR. He revealed the financial institution’s bet against the Bitcoin development company was so huge that its short position could potentially bankrupt the bank if MSTR shares suddenly surged 50% higher above last Friday’s close.
Keiser rallied the crypto community to pump MSTR, drawing parallels to the concerted efforts of retail investors during the GameStop mania in 2021. Additionally, the commentator urged the public to support BTC, given its capability to exponentially propel MSTR stocks higher through their high correlation. In fact, the publication Bitcoin Magazine framed Strategy’s stock as a “high-beta instrument tied to Bitcoin.”
After Keiser’s exposé, several widely followed crypto personalities claimed that “large numbers of users” rushed to close their JPMorgan accounts. They saw the institution’s colossal short on MSTR as a “premeditated attack” not only on Strategy’s shareholders, but also on Bitcoin.
Despite the lack of official confirmation from JPMorgan or any records of its supposed big short on MSTR, calls to boycott the financial giant have continued to gain traction on social media circles as of writing.
JPMorgan Warns MSTR Holders
The calls for a JPMorgan boycott follow the financial institution’s latest warning about Strategy. It pointed out that the company’s premium is narrowing as its balance sheet expands. The report said these factors could contribute to its removal from major stock indices, including the MSCI USA Index and the Nasdaq 100 Index.
Critics cautioned that Strategy being kicked out of the top indices could lead to the derisking of big institutional holders. The event could potentially flood the market with tens of billions in passive outflows, which could negatively impact both MSTR and BTC.
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