Strategy sees $6 billion in short positions as skepticism grows around its Bitcoin investments amid market fluctuations.
Strategy has emerged as a leader in short positions among large-cap stocks in the U.S. market, particularly as Bitcoin's price rebounds to $70,000.
Currently, traders have opened short positions amounting to 14% of Strategy's market capitalization, which stands at $42 billion. This has resulted in a staggering $6 billion in short positions on the company's shares.
Goldman Sachs has identified Strategy as topping the list of 50 stocks with the highest short interest among companies valued over $25 billion. Interestingly, only 63 hedge funds hold shares in Strategy, representing a mere 3% of the firm's total capital.
The growing skepticism surrounding Strategy's corporate Bitcoin strategy stems from its reliance on raising capital through share issuance and debt to invest in cryptocurrency since 2020. This model was successful during the market boom, with share prices soaring from $12 to $473 by November 2025. However, following a nearly 50% decline in Bitcoin's value from its peak, Strategy's shares have suffered significantly, plummeting by 61.39% over the past six months and currently trading at $135.65, which is below the value of its cryptocurrency reserves per share.
As of now, Strategy holds 717,722 BTC, valued at around $47 billion. In contrast, other publicly traded companies have largely ceased investments in Bitcoin, with Strategy now accounting for an overwhelming 99.2% of all corporate purchases of the cryptocurrency, according to BitcoinTreasuries. Notably, on February 23, the firm reported acquiring 592 BTC for $39 million.
