Economist Henrik Zeberg has cautioned that Strategy (NASDAQ: MSTR), formerly known as MicroStrategy stock, might implode due to its exposure to Bitcoin (BTC).
According to Zeberg, the stock could soon present “the greatest shorting opportunity,” he said in an X post on July 18.
Zeberg cautioned that Strategy’s deep exposure to Bitcoin may eventually crash its balance sheet, stating that every time a company adds Bitcoin to its treasury, it “plants a small bomb” in its financials.
He argued that the risk isn’t if Bitcoin tumbles again, but when. According to Zeberg, such a scenario could damage not only Strategy’s market capitalization but also its cash flow, access to credit, and investor confidence.
“Every time a company adds Bitcoin to its treasury, it plants a small bomb in its balance sheet. Not if BTC tumbles again — but when — those bombs go off. And when they do, they don’t just dent the market cap. They hit cash flow, credit lines, and confidence,” he added.
It’s worth noting that Strategy’s pivot toward Bitcoin has been led by executive chairman Michael Saylor, who doubled down on his conviction, claiming that “the only thing better than Bitcoin is more Bitcoin.”
Saylor’s bet has so far paid off, with the stock having surged approximately 3,500% over the past five years, outperforming Bitcoin’s 905% rise over the same period.
MSTR short interest rising
But while Strategy continues to outpace both Bitcoin and traditional market benchmarks, short sellers are taking notice. According to the latest data retrieved from Fintel by Finbold on July 19, short volume in MSTR has risen significantly.
On July 18, 2025, short volume stood at 3.76 million shares out of a total trading volume of 6.74 million, resulting in a short volume ratio of 55.7%, the highest in the past ten trading days. Short interest has remained elevated throughout the period, with ratios consistently above 47% on most days, suggesting mounting bearish sentiment.
Meanwhile, MSTR stock is showing weakness in the short term, having ended the last trading session down over 6% to $423.22. Year-to-date, the stock has gained over 40%.
Although there are concerns about Strategy’s Bitcoin plan, the company continues to add more of the asset, currently holding 601,550 BTC at an average purchase price of $66,384.
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