Bitcoin Giant Strategy, Coinbase Among Most-Shorted Stocks: Goldman Sachs

Big wealth is betting against crypto equities similar Bitcoin treasury steadfast Strategy (MSTR) and American crypto speech Coinbase (COIN), caller information compiled by Goldman Sachs Research shows. 

The firms find themselves ranked archetypal and 4th successful abbreviated involvement arsenic a percent of marketplace headdress astatine 14% and 10%, respectively, among companies valued astatine $25 cardinal oregon greater. 

“Crypto is similar cilantro: Some radical emotion it and immoderate radical hatred it,” Bitwise CIO Matt Hougan told Decrypt. “It's not astonishing to spot it astatine the apical of the abbreviated involvement list,” helium said of MSTR and COIN’s ranking.

While the data, gathered from reported hedge money holdings astatine the extremity of 2025, shows nary notable alteration successful hedge money ownership for the 2 firms from Q3 to Q4, the brace person been immoderate of the weakest performers among apical shorted stocks. 

While up astir 9% connected Wednesday to a caller terms of $135, shares of MSTR person plunged astir 60% successful the past six months arsenic Bitcoin has fallen precipitously from its October all-time precocious of $126,080. The apical crypto asset, and the bedrock of Strategy’s business, is present changing hands astatine $68,614—over 45% beneath that all-time precocious mark. 

That extended diminution has led to mounting losses for Michael Saylor’s firm, formerly known arsenic MicroStrategy, which present finds itself facing unrealized oregon insubstantial losses of astir $5.3 billion.

Skeptics person antecedently noted that if MSTR shares autumn acold enough, it could unit the steadfast to merchantability immoderate of its Bitcoin holdings to repay debts, creating a cascading lawsuit wrong the marketplace arsenic its biggest subordinate liquidates its BTC. The institution established a currency reserve successful December to screen stockholder dividends, but didn’t regularisation retired imaginable Bitcoin income successful the future.

Strategy Will Buy Bitcoin 'Forever', Says Michael Saylor—Even With $5 Billion Paper Loss

Users connected Myriad, a prediction marketplace level operated by Decrypt's genitor institution Dastan, presently pencil successful a little than 15% accidental that Strategy sells Bitcoin by the extremity of 2026. That people has fallen from a highest supra 35% earlier this month.

“Shorting MSTR has been a fashionable commercialized for the past mates of years,” said Hougan, noting that immoderate person been moving arbitrage trades similar “long Bitcoin and past shorting MSTR,” oregon “long the convertible bonds and abbreviated the stock.” 

While those trades are “reasonable” successful Hougan’s eyes, helium said immoderate traders shorting the steadfast are misinterpreting its concern model.

“Some radical don't recognize MSTR's equilibrium sheet, and deliberation the institution is astatine immoderate benignant of menace of going bankrupt if the worth of Bitcoin falls beneath their acquisition price,” helium added.