The bottom of the Bitcoin Treasury stock bloodbat may finally be in.
Jim ChanosThe prominent short seller best known for anticipating the collapse of Enron in 2001, said he has closed his position in the strategy (MSTR), marking the end of an 11-month short mstr/long bitcoin Merchandise A short positionwhich involves selling borrowed shares, is a bet that a stock will fall. Closing the position is a sign that further decline is unlikely to be significant.
Chanos, famous for exposing corporate overvaluation and excessive accounting, is the first targeted strategy when the value of its business (a figure that includes the company’s continuously preferred and convertible notes) is more than the value of its Bitcoin holdings. At this time, MSTR’s multiple net asset value (MNAV) is 2.5, a large premium to its underlying bitcoin.
In a note posted on X, Chanos said MSTR shares are down nearly 50% from their 2025 peak. MNAV has compressed to 1.23, prompting Chanos & Co to recommend covering the trade.
The compression in valuation, combined with the continued issuance of the Common Stock strategy, drove the position to a successful close. Chanos added that while there may be room for further compression of MNAV—the premium may eventually settle near 1.0, or consistency with the value that Bitcoin adjusts to—the basic thesis has been largely played out.
Strategy is the largest publicly traded Bitcoin holder, with 641,205 BTC in its balance sheet, worth nearly $68 billion at current prices. Unlike all other Bitcoin Treasury companies, which have at some point slipped into discounts this cycle, the Tysons Corner, Virginia-based company’s value has maintained a premium.
INHIND coincides with a turbulent year for Bitcoin’s Treasury sector, which has seen the biggest names like Metaplanet (3350) and Kindness (Naka) fall more than 80% from their all-time highs.
On Friday, MSTR fell to a 2025 low, down nearly 20%, while Bitcoin bounced above $105,000, extending year-to-date gains nearly 14%. Failure to avoid MSTR/Long Bitcoin short trading could signal a bottom for Bitcoin Treasury companies.
MSTR shares were up 3% pre-market, trading at $248 per share.
