Strategy Stock Shorted Most Amid Bitcoin’s Near $70,000 Surge
Short sellers are increasing their focus on a stock known as Strategy, which has a market capitalization of $42 billion. Currently, 14% of its market value faces bearish pressure, signaling significant concern among investors. This ongoing trend comes in the wake of Bitcoin’s dramatic price drop, which saw it fall nearly 50% from its late 2025 peak.
Bitcoin’s Influence on Strategy Stock
Michael Saylor, a prominent figure in the Bitcoin community, leads the company known for its Bitcoin treasury model. This innovative approach has now made Strategy the most shorted large-cap stock in the United States. The company has approximately $6 billion worth of shares sold short, highlighting the gravity of the situation.
Short Selling Statistics
- Market Capitalization: $42 billion
- Shares Sold Short: $6 billion
- Percentage of Short Interest: 14%
- Hedge Funds Owning Shares: 63 funds, or 3% of equity
Goldman Sachs recently identified Strategy as the top stock on their list of the 50 most-shorted stocks with market capitalizations exceeding $25 billion. This is a notable shift, as Strategy was once a leading performer during Bitcoin’s prior market surge.
Bitcoin Treasury Model Under Scrutiny
Strategy’s recognition as the most shorted mega-cap company raises concerns about the sustainability of its Bitcoin treasury model, pioneered in 2020. This approach involved raising capital through complex stock and debt offerings to acquire Bitcoin, heightening both profits and losses.
Stock Performance Overview
The company’s stock experienced remarkable growth, peaking at over $473 in November 2025 from just $12 in 2020. However, the stock has recently experienced a downturn, falling 18% in the last month and 60% in the past six months. Currently, shares trade around $135, significantly undervalued compared to the Bitcoin asset it holds.
- Bitcoin Holdings: 717,722 Bitcoin valued at approximately $47 billion
- Recent Stock Performance: Down 18% in the past month, and 60% over six months
Broader Market Impact
Strategy’s struggles reflect a general decline in Bitcoin treasury stocks. The Bitcoin market itself has stagnated, remaining in the $66,000 to $70,000 range and falling short of previous highs above $120,000. Remarkably, Strategy currently accounts for 99.2% of all Bitcoin treasury purchases, while the remaining 193 public companies in this sector have ceased acquiring Bitcoin.
Only one entity other than Strategy has made recent Bitcoin purchases, illustrating a stark trend in the investing landscape. As the cryptocurrency market continues to experience uncertainty, the outlook for Strategy and similar companies remains precarious.
