February 26 News: As Bitcoin’s price rebounds to the $68,000 to $70,000 range, the company Strategy, once famous for its large Bitcoin holdings, is now facing a short squeeze. Data shows that the company is currently the most shorted large-cap listed company in the U.S., with about 14% of its circulating market value in short positions, amounting to nearly $6 billion.
Led by Michael Saylor, Strategy has been implementing a “Bitcoin Treasury Model” since 2020, financing Bitcoin purchases through issuing stock and convertible bonds to leverage its exposure. This strategy delivered remarkable returns during the last bull market, with the stock price soaring from $12 to over $473 in November 2025, significantly outperforming Bitcoin itself.
However, since Bitcoin hit its peak in October 2025 and retraced nearly 50%, Strategy’s stock price has come under pressure, with a total decline of 60% over the past six months, currently hovering around $135. Although the company still holds 717,722 Bitcoins valued at about $47 billion, market skepticism about its high-leverage asset allocation model has increased, and valuation premiums have noticeably shrunk.
According to a hedge fund monitoring report released by Goldman Sachs on February 20, Strategy ranks first among companies with a market value over $25 billion in short interest, with only 63 institutional hedge funds holding its shares, accounting for about 3% of its equity. The rising short interest is seen as a concentrated market expression of concerns over the risks of the “corporate Bitcoin reserve model.”
At the industry level, the Bitcoin treasury concept is also cooling down. Data shows that Strategy accounts for over 99% of the current net Bitcoin purchases by companies, with most other listed companies pausing their accumulation. Bitcoin’s price has been fluctuating between $66,000 and $70,000, far below the peak of over $120,000, putting pressure on leveraged corporate balance sheets.
Against the backdrop of sideways Bitcoin prices and high corporate debt, Strategy’s performance has become a barometer for observing the risks and returns of the “corporate Bitcoin accumulation model.” Whether short sellers succeed will depend on Bitcoin’s next trend direction and the market’s revaluation of high-leverage Bitcoin assets.
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