Strategy Faces $6 Billion in Short Bets, Can It Withstand the Bitcoin Downturn?

▲ Strategy Short...MSTR/ChatGPT-generated image ©

Strategy (MSTR), led by Michael Saylor, who spearheaded the Bitcoin (BTC) renaissance, has come under intense fire from Wall Street short sellers, earning the unwelcome distinction of ranking first in short interest relative to market capitalization.

According to DL News on Feb. 26 (local time), an analysis of Goldman Sachs’ latest Hedge Fund Trend Monitor report found that among companies with a market capitalization exceeding $25 billion, Strategy recorded the highest short interest ratio at 14% of its total market value. Given the company’s current market cap of $42 billion, approximately $6 billion worth of shares are being bet on to decline. Meanwhile, only 63 hedge funds hold positions in Strategy, accounting for just 3% of its total shares.

The growing pessimism stems from Bitcoin’s sharp سقوط of nearly 50% from its peak. After surpassing $120,000 in October 2025, Bitcoin is now trapped in a range between $66,000 and $70,000. Alongside Bitcoin’s decline, Strategy’s stock has also plunged, falling 18% over the past month and 60% over the past six months to around $135—below the per-share value of the Bitcoin it holds.

Strategy pioneered a corporate treasury model in 2020 in which it raised funds through stock and convertible bond issuances to accumulate Bitcoin. During the bull market, this strategy proved successful, sending the stock soaring to $473 in November 2025. However, as the crypto market froze, the leveraged approach turned into a double-edged sword.

Currently, Strategy holds 717,722 bitcoins worth approximately $47 billion, making it the world’s largest corporate holder. However, corporate appetite for crypto purchases has cooled significantly. Data shows that Strategy alone accounts for 99.2% of total corporate Bitcoin purchases, while the other 193 publicly listed companies have effectively halted their accumulation.

*Disclaimer: This article is for investment reference purposes only and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.*