Strategy (MSTR) Dominates Global Short Interest Rankings Among Large-Cap Stocks

TLDR

• Strategy Inc. (MSTR) has become the world’s most-shorted equity among companies valued over $25 billion, with approximately 14% of its $41.6B market capitalization held in short positions.
• A significant portion of these shorts stems from basis trading strategies — investors purchase Bitcoin ETFs such as IBIT while shorting MSTR to exploit premium differentials.
• The firm’s Bitcoin treasury contains 717,722 BTC valued at roughly $47 billion, though unrealized losses total approximately $7 billion.
• Shares jumped nearly 8% on February 25 as Bitcoin rallied 6.5% approaching the $68,000 level.
• The company marked its 100th Bitcoin acquisition, adding 592 BTC for approximately $39.8 million at an average price of $67,286 per token.

Strategy Inc. (MSTR) has claimed a distinctive position in global equity markets: the most heavily shorted large-cap stock worldwide.

Strategy Inc, MSTR

Data compiled by Goldman Sachs and FactSet reveals that roughly 14% of the company’s $41.6 billion market capitalization currently sits in short positions. This figure places Strategy at the top of the list, surpassing every other large-cap equity globally by this metric.

However, the underlying dynamics driving this short interest are far more nuanced than simple bearish sentiment.

A substantial portion of these short positions doesn’t represent direct negative bets on Strategy’s prospects. Rather, many traders are executing what’s known as a basis trade — acquiring Bitcoin exposure via spot ETFs while simultaneously establishing short positions in MSTR to capitalize on the spread between the company’s stock valuation and its underlying Bitcoin asset value.

Jane Street has emerged as a notable player in this space. Recent disclosures show the trading firm holding over 7 million shares in BlackRock’s iShares Bitcoin Trust (IBIT) alongside a substantial MSTR position — a textbook example of this paired trading approach.

$7 Billion Underwater on Paper

Strategy maintains a treasury of 717,722 BTC, amassed since 2020 through various financing mechanisms including convertible debt instruments, equity issuances, and proceeds from its original software operations. The aggregate cost basis stands at $54.56 billion, representing an average acquisition price of $76,020 per Bitcoin.

With Bitcoin hovering around $67,577 during current trading, the company faces approximately $7 billion in unrealized losses on a mark-to-market valuation. While these losses remain unrealized — the Bitcoin hasn’t been liquidated — market participants price securities based on current valuations, and depressed BTC prices diminish asset coverage relative to Strategy’s debt obligations.

This leverage structure amplifies MSTR’s volatility relative to Bitcoin itself. The double-edged nature of financial leverage becomes apparent during both upswings and downturns.

On February 25, Bitcoin surged 6.5% toward the $68,000 threshold. Strategy’s shares responded with a nearly 8% climb, demonstrating the tight correlation between the two assets — and illustrating how rapidly short sellers can experience pressure during Bitcoin rallies.

Milestone 100th Bitcoin Acquisition

Earlier in the same week, Strategy disclosed completion of its 100th Bitcoin acquisition since launching its accumulation program in 2020.

The transaction involved purchasing 592 BTC for roughly $39.8 million, at an average cost of $67,286 per token. Funding came from selling 297,940 Class A shares through the company’s at-the-market equity offering program.

Coinbase (COIN) also appeared prominently in Goldman’s short interest analysis, securing fourth position with short positions representing 11% of its market capitalization.

Nathan McCauley, co-founder and CEO of Anchorage Digital, revealed on February 25 that the digital banking institution maintains holdings of Strategy’s perpetual preferred stock, STRC, as part of its balance sheet.

MSTR shares have declined approximately 12% on a year-to-date basis, with the current market capitalization standing at roughly $45.31 billion.

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