Bitcoin Giant Strategy, Coinbase Among Most-Shorted Stocks: Goldman Sachs
Significant short interest is targeting crypto-related equities, with MicroStrategy (MSTR) and Coinbase (COIN) ranked first and fourth among large-cap companies for short positions as a percentage of market capitalization, at 14% and 10% respectively, according to Goldman Sachs Research. Despite stable hedge fund ownership from Q3 to Q4 2025, both stocks have been among the weakest performers in highly shorted territory. MSTR shares are down about 60% over six months, mirroring Bitcoin’s 45% drop from its October peak. This decline has resulted in roughly $5.3 billion in paper losses for MicroStrategy, fueling speculation over potential forced Bitcoin sales, though such an event is currently seen as unlikely. Some traders employ strategies such as long Bitcoin/short MSTR, but analysts argue that fears over MicroStrategy’s financial stability are exaggerated. Coinbase shares are also down around 40% in six months, although recently rebounded, with some analysts now considering the stock undervalued. Other frequently shorted crypto-related firms include CoreWeave, Robinhood, and PayPal.
