SATS (Ordinals) (SATS)

My theory of $sats price suppression and high short interest + how it will all end.

Convertible arbitrage is probably a major driver of SATS’s elevated short interest

$sats took on a lot of debt. Buyers of the converts sitting on a good 3X, want to lock in gains.

If you loan $sats $1000. You are up 3X. You are now given the option to lock in gains in the latest 10Q

WHAT DO YOU DO?
Short the ownership equal to the value of your own shares to lock in the gains aka convertible arbitrage.

Dateline: June 30

Math Maxing (from latest 10-Q and filings)
🔸Principal amount outstanding: ≈ $1.9426 billion ( Market Value now $6 Billion )
🔸Conversion rate: 29.73507 shares per $1,000 principal
🔸Potential shares if fully converted: ≈ 57.76 million shares
🔸Shares outstanding (as of March 31, 2026): ≈ 289.81 million
🔸Current short interest (as of May 29, 2026): 41.07 million shares
Short % of float: ≈ 30-32%

What does this all mean?
By June 30, Heavy conversion (many arbs convert)
30–50+ million shares bought to cover

Again, this is the kind of DD I’m doing. It makes hodling a hell lot easier.
There will be a time to cut. I’ll know when it comes.

Looking at my timeline. Made the perfect exit at top and perfect entry at bottom to the hour candle.

Was bullish $spcx

Everything was right. But the wrong vehicle again. Reminded me of $sbet

Giving $sats a little more time. If i cut, will let you know. All moves made on challenge port will be shared.

Fundamentally $sats great. Next earnings will be positive due less interest payments which was the problem + partnership with spacex to reduce capex is a great move.

I expect catalyst coming within days. Giving this trade a little more time.

Universe, if it hits the ceiling it gets tough 🐣
$SATS is alive. Did the large bearish candle on 6/12 bring up some pus?