Strategy (NASDAQ:MSTR) has become the most heavily shorted U.S. stock at 14% of market cap, but analysts say much of the positioning reflects basis trades rather than bearish bets.
The Short Interest Surge
Short bets on Strategy equal 14% of its $34 billion market cap at the time of the FactSet and Goldman Sachs report, making it the most shorted stock tracked among companies over $25 billion. Coinbase (NASDAQ:COIN) ranked fourth at 11%.
The positioning coincides with roughly $7 billion in unrealized losses on Strategy’s Bitcoin (CRYPTO: BTC) holdings.
The company holds 717,722 BTC worth $47 billion, purchased at an average price of $76,020 per coin.
The Basis Trade Explanation
Analysts say the elevated short interest likely reflects MSTR/BTC basis trades rather than outright bearish conviction.