
Interactive Brokers (IBKR) is raising margin requirements on MicroStrategy Inc. (MSTR), increasing them to a minimum of 50% by January 13, 2025. This decision aims to reduce the firm's risk exposure, indicating potential volatility in the market. The move comes as a response to concerns surrounding MSTR, which has been a target for short-selling by hedge funds. Analysts suggest that IBKR's approach may lead to forced liquidations for investors who are heavily leveraged in MSTR positions, as the brokerage does not perform margin calls but instead liquidates positions to manage risk. The situation is drawing attention from market participants, with expectations of a significant market event ahead.
🍿POPCORN ALERT 🍿 It looks like a big showdown is brewing on $MSTR 👀⚠️ - on one side a big group of Hedge Funds are heavily short on the stock vs long $BTC (they tried to harvest the fat premium of the stock vs #Bitcoin) - on the other side heavyweight asset managers like… https://t.co/qB2xpyzSqB https://t.co/R2Ixn7cW1b
$IBKR now raising margin requirements on $MSTR via @kshaughnessy2 and @DarioCpx https://t.co/O6o0G4wyig
A lot of levered long $MSTR degens are going to find out the hard way that $IBKR doesn't do margin calls, they just force sell you out of your position. Leverage works great in a bull market run, but once the tables turn... https://t.co/ppXDig1WZC
