Shares in Bitcoin treasury companies could be nearing the end of a period of dampened price action after an investment firm said it closed its short position against Strategy, the largest corporate Bitcoin holding company.
Kynikos Associates founder James Chanos said on Sunday that his investment firm unwound its short position on Michael Saylor’s Strategy (MSTR) and a long position on Bitcoin (BTC) at the start of the trading day on Friday.
“The Bitcoin treasury company bear market is gradually coming to an end,” The Bitcoin Bond Company CEO, Pierre Rochard, said in response.
Chanos said that shares in Strategy are down about 50% from their 2025 high and that the company’s market Net Asset Value (mNAV) has compressed to 1.23x.
“It is prudent to cover this trade with mNAV below 1.25x, having dropped from ~2.0x as recently as July 2025,” Chanos wrote in a note.
He added that MSTR’s implied premium, its enterprise value minus the value of its 641,205 BTC stash, has fallen from about $70 billion in July to $15 billion, suggesting the company may now be better valued.
While MSTR may still experience more mNAV compression, particularly if it issues more common equity, “the thesis has largely played out,” Chanos said.
“This is the kind of signal you want to see for a reversal,” said Rochard.
Shares in many of the 200 publicly traded companies holding Bitcoin on their balance sheets have tumbled in recent months, which has led some analysts to doubt the sustainability of Bitcoin treasury strategies.
MSTR, Metaplanet down massively from mid-year
Strategy has been the hardest hit in total value terms, with its market cap falling over 43% from $122.1 billion in July to $69.5 billion as of Friday.
Metaplanet, one of the best-performing stocks on the Tokyo Stock Exchange to start 2025, has similarly seen its market cap slashed by 56% since June 21.
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Other Bitcoin buying companies have even had to offload some of their BTC holdings to pay outstanding debt.
Crypto market pressure could soon ease
One of the biggest factors holding the market back has been the US government shutdown, however, multiple US media outlets reportedt on Sunday that the Senate reached an agreement to pass a package of budget bills to end the shutdown.
Bitcoin bounced 2% to $106,430 within 50 minutes of the reports, suggesting that the government reopening could boost sentiment toward the crypto market.
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