Hycroft Mining Holding Corp (HYMC)

[LouisDesyjr]

Short Interest on warrants may be 'holding off' on taxes

I expect the large short interest showing on the warrants, over 140K warrants, is the result of anyone being short the stock, which then got converted into short the warrants those shares got converted into.

One reason someone short the stock, and now warrants, could want to hold off on closing out the position would be to put off paying any taxes due on the profit. If that is the case, someone short could put off paying taxes on the profit would be able to do it until tax year for 2022, when the warrants will expire (or all have to be exercised).

A retail investor would probably not want to do that since the margin requirements on the short would be so high, and cash left unused, that it probably not be worth it for them.

Louis J. Desy Jr.