MSTR Short Closed as BTC Treasury Firms Show Signs of Life

MSTR Short Closed as Bitcoin Treasury Firms Show Signs of Life

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 10, 2025

Key Takeaways

James Chanos closed his short position against Strategy (MSTR) and exited a long Bitcoin trade at the start of trading on November 7;
Strategy’s stock has dropped about 50% from its yearly peak, while its market Net Asset Value has narrowed to 1.23 times;
The premium on MSTR’s valuation fell from $70 billion to $15 billion, which led Chanos to conclude that most of his short thesis had played out.

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Stocks linked to Bitcoin BTC $105,559.76 treasury companies may be approaching the end of a long period of weak performance.

James Chanos, founder of Kynikos Associates, shared in a post on X that his firm closed out its short position against Strategy (MSTR), the company led by Michael Saylor.

The decision to exit the position came at the start of the trading session on November 7 and also involved closing a long Bitcoin bet.

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Pierre Rochard, CEO of The Bitcoin Bond Company, responded on X that the trend of declining Bitcoin prices for treasury firms could be reversing. He said:

The Bitcoin treasury company bear market is gradually coming to an end.

Chanos explained that MSTR’s stock had already dropped about 50% below its high earlier this year. He highlighted that a key metric, market Net Asset Value (mNAV), had fallen to 1.23 times.

He also pointed out that the extra value the market had assigned to Strategy, after subtracting the current value of its 641,205 Bitcoin holdings, had decreased. This premium, once close to $70 billion in July 2025, has declined to around $15 billion.

Chanos noted that although the mNAV could still narrow further, especially if Strategy raises money by issuing more shares, most of the original investment case for betting against the stock has played out.

On November 5, Willy Woo shared his view that Strategy is not at risk of selling its Bitcoin holdings during the next major market downturn. How? Read the full story.