Bitcoin Treasury Bear Market Finally Ends as Short Seller Backs Off MSTR

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Well, well, well, it seems like the Bitcoin treasury bear market is, gasp, finally crawling its way to a dramatic end. All thanks to none other than Kynikos Associates, which, after much ado, has closed its short position against Strategy (MSTR), the corporate Bitcoin behemoth, headed by the illustrious Michael Saylor. It’s like watching a bear trying to climb out of hibernation-painfully slow, but at least it’s happening.

James Chanos, the founder of Kynikos Associates, dropped the bombshell on Sunday, revealing that his investment firm unwound its short position on Strategy and a long position on Bitcoin (BTC) early Friday morning, probably right after finishing his coffee and plotting his next move in the grand chess game of market manipulation.

“The Bitcoin treasury company bear market is gradually coming to an end,” said Pierre Rochard, CEO of The Bitcoin Bond Company, sounding as if he were delivering the final, dramatic lines in a Shakespearean tragedy. 🍿

Now, don’t get too excited. MSTR’s stock may still be down roughly 50% from its high in 2025, with its market Net Asset Value (mNAV) having crunched down to a mere 1.23x. It’s like watching your favorite stock get crushed by gravity in real time. Sad, but oddly satisfying.

Chanos, ever the pragmatic investor, noted that it was simply “prudent” to close the trade with mNAV below 1.25x, considering it had dropped from a dizzying 2.0x just a few months ago. The poor stock’s implied premium-the value of Strategy’s 641,205 Bitcoin stash minus the enterprise value-has plummeted from a once majestic $70 billion to a paltry $15 billion. 💸

But wait! There’s more! Despite all the doom and gloom, Chanos graciously added that the “thesis has largely played out,” meaning, for once, his crystal ball was on point. A reversal may very well be on the horizon, just in time for the weekend! 🎉

But it’s not just MSTR that’s been on a downward spiral. A whole slew of Bitcoin treasury companies have watched their shares plunge in recent months, leaving some analysts raising an eyebrow at the sustainability of these wild Bitcoin-hoarding strategies. Could it be? A trend? Perish the thought! 🧐

MSTR, Metaplanet Down Massively from Mid-Year

In what might be called a “humbling” slide, MSTR has suffered the worst, with its market cap tumbling by a whopping 43% from $122.1 billion in July to a far less glamorous $69.5 billion as of Friday. Ouch.

Metaplanet, a previously stellar performer on the Tokyo Stock Exchange, has also seen its market cap get decimated by 56% since June 21. Guess even space companies can’t escape the gravity of market forces. 🌌

Some of the other Bitcoin-hoarding firms have even had to sell off some of their precious BTC just to pay off mounting debts. Who knew Bitcoin could be such a demanding pet? 🐾

Crypto Market Pressure Could Soon Ease

As if in a miraculous turn of events, one of the biggest anchors holding the market down-the U.S. government shutdown-appears to be winding down. Multiple media outlets reported on Sunday that the Senate had reached an agreement to pass a package of budget bills, paving the way for the end of the shutdown. Can we get a hallelujah?! 🙏

Bitcoin, sensing a fresh breeze in the market, surged by 2% to $106,430 within 50 minutes of the news, proving that the crypto market may just be in the mood to party again. Maybe this whole ‘government shutdown’ thing was just a bad dream. 😅

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2025-11-10 08:03