Strategy shares are down about 50% from their 2025 high, with the company's market net asset value compressed to 1.23x.
Crypto News
James Chanos announced Sunday that Kynikos Associates unwound its short position on Michael Saylor's Strategy ($MSTR) and a long position on Bitcoin at the start of Friday's trading day.
Strategy shares are down about 50% from their 2025 high, with the company's market net asset value compressed to 1.23x. "It is prudent to cover this trade with mNAV below 1.25x, having dropped from approximately 2.0x as recently as July 2025," Chanos wrote in a note.
The Kynikos Associates founder explained that MSTR's implied premium, its enterprise value minus the value of its 641,205 Bitcoin stash, has fallen from about $70 billion in July to $15 billion. This suggests the company may now be better valued, he indicated.
"The thesis has largely played out," Chanos said, though he acknowledged Strategy may still experience more mNAV compression, particularly if it issues more common equity. Pierre Rochard, CEO of The Bitcoin Bond Company, responded by stating that the Bitcoin treasury company bear market is gradually coming to an end.
"This is the kind of signal you want to see for a reversal," Rochard said in response to Chanos's announcement. Shares in many of the 200 publicly traded companies holding Bitcoin on their balance sheets have tumbled in recent months.
Strategy has been the hardest hit in total value terms, with its market cap falling over 43% from $122.1 billion in July to $69.5 billion as of Friday. Metaplanet, one of the best-performing stocks on the Tokyo Stock Exchange to start 2025, has similarly seen its market cap slashed by 56% since June 21.
The declines have led some analysts to doubt the sustainability of Bitcoin treasury strategies. Other Bitcoin buying companies have even had to offload some of their Bitcoin holdings to pay outstanding debt.
One of the biggest factors holding the market back has been the U.S. government shutdown. However, multiple U.S. media outlets reported on Sunday that the Senate reached an agreement to pass a package of budget bills to end the shutdown, with Bitcoin bouncing 2% to $106,430 within 50 minutes of the reports, suggesting the government reopening could boost sentiment toward the crypto market.
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