Key Points
- Strategy (MSTR) commands the highest short interest position globally among stocks exceeding $25B market capitalization, with approximately 14% of its $41.6B market cap currently shorted.
- A significant portion of short positions stems from basis trading strategies rather than outright bearish positioning — investors purchase Bitcoin ETFs such as IBIT while simultaneously shorting MSTR to exploit the premium differential.
- The firm maintains a position of 717,722 BTC valued at approximately $47B, though current valuations show roughly $7B in paper losses.
- Shares of MSTR jumped approximately 8% on February 25 as Bitcoin rallied 6.5% approaching $68,000.
- The company marked its 100th Bitcoin acquisition, adding 592 BTC through a ~$39.8M purchase at an average price of $67,286 per token.
Strategy Inc. (MSTR) currently wears a distinctive badge in financial markets: holder of the largest short position among all global stocks valued above $25 billion.
Approximately 14% of the company’s $41.6 billion valuation has been taken short, based on analytics from Goldman Sachs and FactSet. This percentage surpasses all other large-capitalization equities worldwide by this metric.
Yet the narrative underlying these statistics reveals more nuance than initial appearances suggest.
A substantial portion of these short positions don’t represent straightforward wagers on MSTR’s decline. Rather, numerous positions form part of basis trading strategies — investors acquire Bitcoin exposure via spot ETFs while concurrently shorting MSTR to capture arbitrage opportunities between Strategy’s share price and the underlying value of its Bitcoin treasury.
Jane Street frequently surfaces in these discussions. The trading firm recently revealed holdings exceeding 7 million shares in BlackRock’s iShares Bitcoin Trust (IBIT), complemented by substantial MSTR positioning — a textbook paired trade configuration.
Brian Brookshire, an expert focused on Bitcoin treasury corporations, stated directly: “I suspect a lot of this short interest is still MSTR/BTC basis trade.”
Paper Losses Reach $7 Billion
Strategy presently maintains 717,722 BTC, acquired since 2020 utilizing convertible debt instruments, equity issuances, and proceeds from its original software operations. The aggregate cost basis totals $54.56 billion, reflecting an average acquisition price of $76,020 per token.
With Bitcoin exchanging around $67,577 during reporting, the company faces approximately $7 billion in unrealized losses on a mark-to-market evaluation. These holdings remain unsold — losses exist solely on paper — yet markets continuously reprice expectations, and depressed BTC valuations diminish asset backing relative to the firm’s debt obligations.
This mechanism explains MSTR’s amplified volatility compared to Bitcoin itself. Financial leverage magnifies movements in both directions.
On February 25, Bitcoin climbed 6.5% toward $68,000. MSTR responded with an almost 8% surge, demonstrating the tight correlation between the assets — and illustrating how rapidly short positions face pressure when BTC appreciates.
Century Mark Achievement
During that same week, Strategy revealed completion of its 100th Bitcoin acquisition since launching its accumulation program in 2020.
The transaction added 592 BTC for approximately $39.8 million, reflecting an average cost of $67,286 per token. Funding originated from selling 297,940 Class A shares through its at-the-market distribution facility.
Coinbase (COIN) also appeared in Goldman’s short interest analysis, securing fourth position with short positions representing 11% of its capitalization.
Anchorage Digital co-founder and CEO Nathan McCauley announced on February 25 that the digital banking institution maintains Strategy’s perpetual preferred instrument, STRC, within its balance sheet.
MSTR shares have declined roughly 12% year-to-date, currently reflecting a market capitalization near $45.31 billion.
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