Shares in bitcoin treasury companies could be nearing the end of a period of weak price action after an investment firm said it closed its short position against Strategy, the largest bitcoin holder.
Kynikos Associates founder James Chanos He said on Sunday that his investment firm unwinds its short position on the Michael Saylor Strategy (MSTR) and its long position on Bitcoin (BTC) at the beginning of the trading day on Friday.
“The Bitcoin Treasury bear market is gradually coming to an end,” said Bitcoin Bond Company CEO Pierre Rochard, He said In response.
Shares in Strategy are down about 50% from their 2025 high and that the company’s market net asset value (mNAV) has fallen to 1.23 times, Chanos said.
“It is prudent to cover this trade at mNAV below 1.25x, having fallen from ~2.0x as recently as July 2025,” Chanos wrote in a note.
The implied MSTR premium is the value of the enterprise minus the value of its equity, he added 641,205 BTC stock has fallen from about $70 billion in July to $15 billion, suggesting that the company’s value may now be better.
While MSTR may still face more mNAV pressure, especially if it issues more common stock, “the premise has largely proven itself,” Chanos said.
“That’s the kind of signal you want to see for a reversal,” Rochard said.
Shares in many of the 200 publicly traded companies that hold bitcoin on their balance sheets have fallen in recent months, leading some analysts to doubt the sustainability of bitcoin treasury strategies.
MSTR, Metaplanet has declined significantly since mid-year
The strategy was the hardest hit in terms of overall value, with its market capitalization declining 43% From $122.1 billion in July to $69.5 billion as of Friday.
Likewise, Metaplanet, one of the best-performing stocks on the Tokyo Stock Exchange as of 2025, saw its market capitalization decline by 56% Since June 21st.
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Other Bitcoin buyers were forced to offload some of their Bitcoin holdings to pay off outstanding debts.
Cryptocurrency market pressure could ease soon
The US government shutdown was one of the biggest factors holding back the market, however, several US media outlets reported on Sunday that the Senate had reached an agreement to pass a package of budget bills to end the shutdown.
Bitcoin rose 2% to $106,430 within 50 minutes of the reports, suggesting that the government’s reopening could boost sentiment towards the cryptocurrency market.
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