Why Is Strategy’s $47B Bitcoin Treasure Being Heavily Shorted Despite Bitcoin’s Rebound?

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Strategy Holds $47B in <a href="https://pricpr.com/btc-usd/">Bitcoin</a> – So Why Is It Heavily Shorted?

Despite Bitcoin recovering to around $70,000, a particular strategy is holding a significant amount – 717,722 BTC, valued at $47 billion. This strategy also has $6 billion worth of short interest, representing 14% of the total.

Bitcoin has rebounded to around $70,000, yet it remains below its October 2025 peak.

As the market has recovered, MicroStrategy, led by Michael Saylor, has become one of the most heavily shorted large companies in the U.S.

Despite holding a significant amount of Bitcoin—worth more than its current market value—investor data indicates increasing pessimism about the company’s prospects.

Short Interest Rises Among Large-Cap Stocks

Strategy ranks near the top for short interest among companies with market caps above $25 billion.

Currently, around 14% of the company’s stock is being sold short. With a total market value of $42 billion, this represents nearly $6 billion in bets that the stock price will fall.

Short selling is a strategy where traders can make money when a stock’s price goes down. It involves borrowing shares and selling them, with the goal of buying them back later at a lower price.

When short interest goes up, it usually means investors expect a stock’s price to become more unstable or even fall. Traders keep a close eye on short interest to get a sense of how others are feeling about a stock.

Strategy’s performance is particularly notable among major companies, especially given the recent changes in Bitcoin prices. This difference has been attracting notice.

Bitcoin Holdings Exceed Market Value

Based on company reports, Strategy currently owns approximately 717,722 Bitcoin. With Bitcoin trading around $70,000, these holdings are worth roughly $47 billion.

This figure exceeds the company’s reported market capitalization.

Even though Bitcoin’s price recovered to around $70,000, it’s still lower than its high from October 2025. Interestingly, Strategy, the company run by Michael Saylor that holds a large amount of Bitcoin, has become one of the most heavily shorted large companies in the U.S. Data shows this is true for companies valued at over $25 billion.

— Wu Blockchain (@WuBlockchain)

For several years, the company has been building a Bitcoin reserve. They’ve funded these purchases by both borrowing money and selling shares.

The company positions Bitcoin as its primary reserve asset.

Bitcoin remains below its October 2025 high, which affects the value of Strategy’s holdings.

Changes in Bitcoin’s price directly affect our company’s financial results, making us more vulnerable to the ups and downs of the cryptocurrency market.

Related Reading: Institutions Double Down: Anchorage Adds STRC as BTC Strategy Expands

Market Reaction and Volatility Factors

Bitcoin’s rebound to $70,000 has provided support for crypto-related stocks.

Strategy’s stock price has been declining, partly because many investors are betting against it. There’s currently no clear consensus among traders about where the stock will go in the near future.

As a crypto investor, I know that when a lot of people are betting *against* a coin (shorting it), it can make the price really jump around. If the price starts going up quickly, those short sellers might have to buy back in to limit their losses, and that buying actually pushes the price *even higher*. It’s a bit of a snowball effect.

If prices decrease, short sellers might increase their bets against the asset. The strategy’s overall value is based on its regular business operations and how much it holds in Bitcoin.

Investors are still watching how the company’s stock price moves in relation to Bitcoin. Despite changes in the crypto market, trading of the company’s stock remains fairly busy.

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2026-02-26 16:13