Bitcoin-focused Strategy and crypto exchange Coinbase have emerged as two of the most shorted stocks in the market, according to data from Goldman Sachs. The stocks have faced significant declines, with Strategy and Coinbase shares dropping 60% and 40% respectively in the last six months, as Bitcoin’s value tumbled from its October all-time high. This trend is reflective of the broader polarization in investor sentiment toward crypto equities amid volatile market conditions. Strategy has been particularly targeted for arbitrage trades, involving long positions in Bitcoin paired with shorts on related stocks, a trend noted by Bitwise CIO Matt Hougan. Despite the challenges, Strategy’s CEO Michael Saylor remains confident in their position, even suggesting the company could withstand Bitcoin values dropping significantly further.
Strategy, Coinbase ranked top shorted stocks per Goldman Sachs
