Shares in companies holding large Bitcoin reserves may be approaching the end of a long period of stagnation, following new signals from one of Wall Street’s most well-known short sellers.
James Chanos, founder of Kynikos Associates, recently announced that his firm had closed its short position against Michael Saylor’s MicroStrategy (MSTR), while simultaneously ending its long position on Bitcoin itself.
Chanos, famous for his bearish bets against major firms in past decades, said that MicroStrategy’s stock has already declined about 50% from its 2025 peak. He explained that the company’s market Net Asset Value (mNAV) has dropped to 1.23x from around 2.0x in July. Notably, mNAV is a measure comparing the company’s market cap to the value of its BTC holdings.
With that ratio now below 1.25x, Chanos said it was prudent to exit the trade, noting that MSTR’s implied premium has fallen dramatically from about $70 billion in mid-2025 to $15 billion today.
Pierre Rochard, CEO of The Bitcoin Bond Company, described the move as a positive market signal. He also added that the “bear market for BTC treasury companies is gradually coming to an end.”
Sharp Declines Across Bitcoin-Holding Companies
MicroStrategy has been one of the hardest-hit stocks in the sector, with its market capitalization plunging over 43% from $122.1 billion in July to $69.5 billion as of last Friday. The decline mirrors broader weakness across companies that hold Bitcoin on their balance sheets, many of which have seen steep drawdowns this year.
In Japan, Metaplanet has seen its market value slashed by 56% since June 21. Several other Bitcoin-holding corporations have reportedly had to sell portions of their reserves to cover outstanding debts amid declining share prices and tightening liquidity conditions.
Renewed Optimism as Market Pressures Ease
Despite recent struggles, some analysts believe the worst may be over. One key factor pressuring the crypto and equity markets has been the prolonged U.S. government shutdown, which created uncertainty for investors.
However, multiple U.S. media outlets reported on Sunday that the Senate has reached an agreement to pass a set of budget bills to reopen the government.
Shortly after the reports surfaced, Bitcoin rose 2% to $106,430 within 50 minutes. Traders are guessing that improved macroeconomic conditions could help restore confidence in the crypto market.