$6B in Shorts Push Strategy to Most Shorted U.S. Mega-Cap Amid Bitcoin Dip

Strategy has become the most heavily shorted large-cap stock in the U.S., reflecting growing doubts about its Bitcoin focus.

The surge in bearish positioning follows a steep pullback in the Bitcoin price since its October 2025 record high, prompting investors to reassess the sustainability of the company’s aggressive Bitcoin accumulation strategy.

Key Points

• Strategy is now the most shorted mega-cap stock in the US, with about 14% of its market value sold short.
• Short sellers have borrowed and sold roughly $6 billion worth of Strategy shares, signaling strong bearish sentiment.
• The company’s stock has fallen about 60% over the past six months as Bitcoin retreated from record highs.
• Strategy holds 717,722 Bitcoin worth approximately $47 billion, making it the world’s largest corporate holder.

Rising Short Interest Signals Growing Doubt

As Bitcoin’s rally faded, bearish bets against Strategy accelerated. Approximately 14% of the company’s total market capitalization, equivalent to roughly $6 billion in borrowed shares, has now been sold short.

Put differently, for every $100 worth of Strategy stock in circulation, nearly $14 has been sold short by investors expecting further declines. This level of positioning makes it the most shorted mega-cap stock in the US market.

Data from Goldman Sachs reinforces that trend. In its latest Hedge Fund Trend Monitor, released on February 20, the bank ranked Strategy at the top of its list of the 50 most shorted companies with market capitalizations above $25 billion. The report also noted that only 63 hedge funds currently hold the stock, accounting for just 3% of its total equity.

This marks a dramatic reversal from 2025, when Strategy was widely viewed as one of the biggest beneficiaries of Bitcoin’s rally and a favored proxy for leveraged exposure to the cryptocurrency.

Bitcoin Treasury Model Faces a Critical Test

Strategy’s rise, and its current vulnerability, stem from its unconventional treasury approach pioneered by Executive Chairman Michael Saylor. Beginning in 2020, the company adopted a model centered on raising capital through share issuances and convertible debt, then deploying those funds to acquire Bitcoin.

This structure inherently magnifies market movements. During Bitcoin bull markets, the strategy amplifies gains and can drive equity performance beyond the underlying asset. However, the same leverage intensifies downside risk when prices fall.

The model proved highly effective during the crypto boom. Strategy’s stock surged from $12 in 2020 to more than $473 in November 2025. At its peak, the shares even outperformed Bitcoin on a percentage basis, as investors paid a premium for leveraged exposure.

Now, that premium has largely disappeared. The stock has fallen 18% over the past month and 60% over the past six months. Shares are currently trading near $136, below the per-share value of the company’s Bitcoin holdings. This reversal has intensified questions about how the model performs in weaker market conditions.

Heavy Bitcoin Exposure Amid Sector Retreat

Despite the market turbulence, Strategy remains the largest corporate holder of Bitcoin. The company owns 717,722 coins, valued at roughly $47 billion at current prices.

However, Bitcoin itself has entered a period of consolidation, trading between $66,000 and $70,000, far below its October 2025 peak above $126,000.

According to data from BitcoinTreasuries.net, Strategy accounts for 99.2% of all recent corporate Bitcoin purchases. In contrast, the remaining 193 public companies with Bitcoin on their balance sheets have largely paused acquisitions. Only one company besides Strategy added Bitcoin in the past week.

Cooling Momentum Raises Broader Questions

Taken together, these developments point to a broader slowdown in corporate Bitcoin adoption. As volatility rises and prices remain below prior highs, many firms appear increasingly cautious about expanding their exposure.

For Strategy, the stakes are particularly high. Its outsized Bitcoin holdings, once a powerful growth driver, have now become the central risk factor shaping investor sentiment. With short interest at record levels, the company’s future performance remains tightly linked to Bitcoin’s next major move.