Crypto bank Anchorage Digital said it holds Strategy’s Nasdaq-listed perpetual preferred security STRC, adding institutional backing as hedge funds intensify bearish bets against Michael Saylor’s Bitcoin treasury company.
Strategy has climbed to the top of Goldman Sachs’ list of most-shorted large-cap US equities by short interest as a percentage of market capitalisation, a sharp shift from a year ago when it did not rank among the top 50.
“Conviction compounds. Institutions don’t just talk about Bitcoin, they structure around it,”
Said Anchorage co-founder and chief executive, Nathan McCauley.
STRC is marketed as a short-duration, high-yield instrument paying an 11.25% annual dividend in monthly cash distributions, with proceeds historically used to finance additional Bitcoin accumulation.
“When the company that operationalises Bitcoin infrastructure puts capital alongside the company that operationalised the Bitcoin treasury strategy…that’s a signal,”
McCauley added, without disclosing the size or timing of the purchase.
Strategy currently holds 717,722 Bitcoin valued at about $46.68 billion, acquired at an average cost near $76,020, leaving the firm with an estimated $7 billion unrealised loss at current prices around $66,000.
The company recently announced plans to convert roughly $6 billion in convertible bond debt into equity to reduce leverage, while stating its Bitcoin treasury would still cover liabilities unless prices fell close to $8,000.
At the time of reporting, Bitcoin price was $67,957.65.