Key Highlights
- Short seller James Chanos closed his short on MSTR and exited a long on Bitcoin, saying the main trade has largely played out.
- MSTR opened at $224—down 50% from its peak—with its mNAV dropping to 1.23x.
- Experts like Pierre Rochard suggest this could be an early signal that the Bitcoin treasury bear market is ending.
Shares of companies whose treasuries are heavily invested in Bitcoin are showing signs of stabilization after a period of steep declines.
This shift comes after well-known short seller James Chanos announced that his investment firm, Kynikos Associates, has closed its short position in Strategy, formerly MicroStrategy (MSTR), and exited a long position on Bitcoin (BTC) itself.
According to the firm’s note, Strategy (MSTR) opened at around $224 on November 7, 2025, down about 50% from its yearly peak. Its market Net Asset Value (mNAV) has dropped to 1.23x from 2.50x when the trade was first recommended in late 2024.
The firm valued Strategy’s enterprise at $79.5 billion, backed by 641,205 BTC worth $64.3 billion and net debt of $14.4 billion.
Chanos said that while MSTR’s value could still fall slightly, the main part of the trade has largely played out. The company’s implied premium, the gap between its total value and its Bitcoin holdings, has dropped from $80 billion in late 2024 to about $15 billion.
He added that if MSTR issues more shares, the premium may shrink further, but it’s now “sensible to close the trade” as the stock’s value moves closer to its Bitcoin holdings.
Pierre Rochard, CEO of The Bitcoin Bond Company, said the move could be an early sign that the “Bitcoin treasury bear market is gradually coming to an end.”
Institutional trends and outlook
Bitcoin Treasuries data shows public companies now hold roughly 1,054,735 BTC, about 4.7% of Bitcoin’s total supply. Metaplanet, a Japanese investment firm, reached its 2025 Bitcoin target by purchasing 5,268 BTC on October 1, bringing its total holdings to 30,823 BTC. Metaplanet has also announced an ambition to hold over 210,000 BTC by the end of 2027.
However, Strategy and Metaplanet have both seen steep declines, with Metaplanet’s market value falling 56% since June. Several Bitcoin-holding firms have even sold portions of their holdings to cover debts.
Although, there may be relief ahead. Reports from the United States suggest lawmakers have reached a deal to end the government shutdown, a key factor that had weighed on markets.
Meanwhile, as per Yahoo Finance, MSTR closed at $241.93 on November 7, up 1.99%, and was trading higher in pre-market at $249.85, up 3.27%. Metaplanet closed at ¥427.00, up 2.89% (+12.00).
Even Bitcoin rose 3.91% in 24 hours, trading around $106,002, with its market capitalization reaching $2.12 trillion. Trading activity also picked up, with 24-hour BTC volume climbing 45% to $70 billion, reflecting renewed optimism across the crypto sector.
Also Read: Strategy Inc. to Raise $715M to Increase Bitcoin Holdings
