Wall Street Short Interest Surges Against Strategy as Anchorage Acquires STRC Position
Michael Saylor's Bitcoin-focused company now leads Goldman Sachs data as the top large-cap equity target for short sellers amid growing hedge fund pessimism.
Digital asset banking institution Anchorage Digital has disclosed that it currently maintains Strategy's perpetual preferred security STRC within its corporate holdings, providing institutional support to Michael Saylor's Bitcoin-centric treasury operation during a period of heightened bearish sentiment from Wall Street market participants.
Through a Wednesday statement posted to X, Anchorage's CEO and co-founder Nathan McCauley indicated the acquisition demonstrates strategic alignment between organizations dedicated to Bitcoin (BTC) infrastructure development and corporate treasury integration. "Conviction compounds. Institutions don't just talk about Bitcoin, they structure around it," McCauley wrote.
"When the company that operationalizes Bitcoin infrastructure puts capital alongside the company that operationalized the Bitcoin treasury strategy…that's a signal," he added. Anchorage did not reveal the size or timing of the position.
Based on information from Strategy's official website, STRC represents a Nasdaq-listed perpetual preferred security positioned as a short-duration, high-yield financial product. The instrument delivers an 11.25% annual dividend distributed monthly in cash. Capital raised through the instrument has historically financed the firm's continued Bitcoin accumulation.
Strategy becomes Wall Street's most-shorted stock
The timing of Anchorage's acquisition coincides with Strategy's ascent to the peak position on Goldman Sachs' ranking of most-shorted large-cap US equities measured by short interest as a percentage of market capitalization. Twelve months prior, the company failed to appear within the top 50. The company began rising on the list in late 2025 as its share price weakened even before Bitcoin peaked in October.
The practice of short selling entails borrowing equity shares and disposing of them with the anticipation of buying them back subsequently at a reduced price. Financial losses can escalate if the stock rises.
Strategy operates as a leveraged public-equity proxy for Bitcoin. The firm issues securities and deploys the proceeds into BTC. Returns can amplify during rallies, while downturns magnify pressure on the share price.
The organization presently maintains 717,722 Bitcoin valued at approximately $46.68 billion at current market prices. On Monday, the firm disclosed another purchase, acquiring 592 BTC for $39.8 million. The coins were acquired at an average cost of roughly $76,020, leaving the company sitting on an estimated $7 billion unrealized loss with Bitcoin trading near $66,000.
Strategy plans debt-to-equity shift
During the previous week, Strategy founder Michael Saylor announced the company intends to convert roughly $6 billion in convertible bond debt into equity, replacing repayment obligations with newly issued shares. The modification would reduce leverage on the balance sheet by turning bondholders into shareholders, though it could dilute existing investors.
The company stated that its Bitcoin treasury reserves would continue to exceed its liabilities even under extreme market conditions. According to the company, Bitcoin would need to fall close to $8,000, an estimated 88% drop, before its holdings and debt reached parity.