Nikolas Sargeant
Cryptocurrency bank Anchorage Digital has disclosed holdings of Strategy's perpetual preferred security STRC, adding institutional backing to the Bitcoin treasury company as Wall Street traders increasingly bet against the stock through short positions.
Anchorage confirmed the purchase Wednesday, characterizing it as alignment between companies focused on Bitcoin infrastructure and corporate treasury adoption. The crypto bank did not disclose the position's size or timing, though the announcement arrives as Strategy faces mounting bearish pressure from traditional finance.
STRC is a Nasdaq-listed perpetual preferred security marketed as a short-duration, high-yield instrument. The shares pay an 11.25% annual dividend distributed monthly in cash, with capital raised through the instrument historically financing Strategy's continued Bitcoin accumulation.
Strategy has climbed to the top of investment bank lists tracking most-shorted large-cap US equities by short interest as a percentage of market capitalization. A year ago, the company did not rank among the top 50 most-shorted stocks. Strategy began rising on short interest rankings in late 2025 as its share price weakened before Bitcoin peaked in October.
Short selling involves borrowing shares and selling them with expectations of repurchasing later at lower prices. Losses can accumulate rapidly if the stock rises instead of declining as anticipated.
Strategy functions as a leveraged public-equity proxy for Bitcoin, issuing securities and deploying proceeds into cryptocurrency. Gains can amplify during rallies, while downturns magnify pressure on share prices due to the leveraged structure.
The company currently holds 717,722 Bitcoin worth approximately $46.68 billion at current market prices. Strategy announced another purchase Monday, acquiring 592 BTC for $39.8 million at an average cost of approximately $76,020, leaving the company sitting on an estimated $7 billion unrealized loss with Bitcoin trading near $66,000.
Strategy plans to convert roughly $6 billion in convertible bond debt into equity, replacing repayment obligations with newly issued shares. The change would lower leverage by turning bondholders into shareholders, though it could dilute existing investors. Strategy stated Bitcoin would need to fall close to $8,000, approximately an 88% decline, before its holdings and debt reached parity.
