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- Strategy now holds the highest short interest among large-cap US stocks.
- Bearish bets target 14 percent of its total market value.
- Falling Bitcoin prices have shaken confidence in its treasury model.
According to the report, Strategy has become the most shorted large-cap stock in the United States. The company holds a market value of about 42 billion dollars. Short sellers now bet against nearly 14 percent of that value.
This equals close to 6 billion dollars in bearish positions. The shift marks a sharp turn for a stock that once stood as a symbol of the Bitcoin boom. Strategy now tops the list of the most shorted stocks with market values above 25 billion dollars.
The ranking comes from Goldman Sachs in its latest Hedge Fund Trend Monitor dated February 20. Only 63 hedge funds currently hold Strategy shares. That figure represents just 3 percent of total equity. Short sellers borrow shares and sell them in the market.
Short Sellers Increase Bets Against Strategy
They plan to purchase them later at lower prices. At present, 14 out of 100 dollars of Strategy stock are under short positions. This is a massive amount of betting and reflects a high degree of uncertainty among professional investors. This has been caused by a steep fall in Bitcoin prices.
The asset has lost nearly 50 percent of its value since its peak in October 2025. When Bitcoin prices were declining, negative market sentiment among bearish investors led to increased selling pressure on companies with a high degree of Bitcoin exposure. Strategy is in the eye of this storm due to its massive investment and public commitment to its accumulation policy. Heavy short interest has raised market concerns.
Strategy pioneered the Bitcoin treasury model in 2020 by raising capital through stock sales and convertible debt to buy Bitcoin. The approach paid off in the 2025 rally, pushing shares above 473 dollars in November and outperforming Bitcoin, with the stock trading at a leveraged premium.
Strategy Stock Drops Despite Large Bitcoin Holdings
The premium has disappeared. Strategy shares are down 18 percent in one month and nearly 60 percent in six months. The stock now trades near 135 dollars, below the per-share value of its Bitcoin holdings. The firm holds 717,722 Bitcoin, worth about 47 billion dollars.
The decline of Strategy has been accompanied by weakness in other equities linked to Bitcoin. Treasury-focused equities have fallen by record amounts as the price of Bitcoin trades between 66,000 and 70,000 dollars. This is much lower than the 120,000 dollars it traded for previously.
Strategy now makes up 99.2 percent of all Bitcoin treasury purchases. This suggests 193 public firms have halted buying. Sentiment among equities has weakened, while Michael Saylor’s firm stays firmly pro-Bitcoin. Markets now doubt whether this aggressive strategy can last during price weakness.
Also Read: Strategy Buys 592 BTC for $39M as Accumulation Drive Expands
