Markets
What to know:
- Strategy (MSTR), the largest public bitcoin holder, has seen its mNAV fall from 2.5x to 1.23x, prompting Jim Chanos to unwind his short MSTR/long bitcoin trade after an 11-month run.
- The move comes as Bitcoin treasury firms like Metaplanet (3350) and KindlyMD (NAKA) suffer steep corrections, while MSTR remained the only major player not to trade at a discount.
Oh, so it seems that the end of the bloodbath for Bitcoin treasury stocks is upon us. But wait, before we celebrate, let’s check out the details-just in case it’s another cruel twist of fate.
Jim Chanos, the short seller who once sniffed out the rotting carcass of Enron in 2001 (how quaint), decided to close his position on Strategy (MSTR). This marks the end of his 11-month-long “short MSTR/long bitcoin” strategy. For those unfamiliar, a short position is like betting on the Titanic sinking (again), and unwinding it means the iceberg might be in the rearview mirror. Maybe. Who knows?
Chanos’ rationale is quite clear: Strategy’s enterprise value shot way past the value of its bitcoin holdings. When MSTR’s multiple net asset value (mNAV) hit 2.5, it seemed like a recipe for disaster. The premium to the underlying bitcoin was so big it could make even the most die-hard bitcoin fan squint in disbelief.
Fast-forward to the present, and it turns out the joke is on MSTR. Their mNAV has compressed to 1.23, like a pair of pants after Thanksgiving dinner. Chanos, the man with the plan, has now recommended closing the trade. How lovely for him, right?
The reasoning behind this “success” is simple enough: MSTR is constantly issuing more stock, like a never-ending stream of corporate indulgence, and that’s driven Chanos’ position into the “successful close” zone. But, hey, let’s not get too excited-there’s still a chance that MSTR’s mNAV could eventually settle near 1.0. You know, just to remind everyone that reality always bites back.
Strategy remains the king of bitcoin holders, with 641,205 BTC on its balance sheet. At today’s prices, that’s worth around $68 billion. While everyone else is tripping over their bitcoin holdings and slipping into discounts, MSTR has stayed in the green zone. Kudos to them, or whatever.
Of course, Chanos’ dramatic exit just so happens to coincide with a particularly turbulent year for the bitcoin treasury sector. Big names like Metaplanet (3350) and KindlyMD (NAKA) have dropped more than 80% from their peak, and we’re all just standing here, watching the train wreck. Who’s next?
On Friday, MSTR fell to a 2025 low, down about 20%, even as bitcoin managed a minor rebound above $105,000, bringing its year-to-date gains to roughly 14%. It’s almost poetic, isn’t it? So, if you were betting on MSTR’s crash, you might want to rethink your strategy. Or maybe not. It’s all fun and games until the next crash, right?
Pre-market trading sees MSTR up 3%, at $248 per share. Not much, but hey, better than nothing, right?
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2025-11-10 13:11