Bitcoin Stocks Bounce Back-Is the Market Finally Rebounding or Just a Brief Moment of Glory?

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Key Highlights

  • The famous short seller James Chanos closed his short on MSTR and ditched his Bitcoin long position, claiming the trade has mostly run its course. How revolutionary!
  • MSTR opened at $224-down 50% from its peak, with its mNAV slumping to a humble 1.23x.
  • Experts like Pierre Rochard suggest this might be the first glimmer of hope that the Bitcoin treasury bear market is finally calling it quits. How nice for us!

The stocks of companies holding large Bitcoin treasuries are showing some signs of life, after what can only be described as a free fall.

This apparent rebound comes after the well-known short seller James Chanos (yes, the one with the famous bearish reputation) announced that his investment firm, Kynikos Associates, had closed its short position in Strategy-formerly MicroStrategy (MSTR)-and also exited its Bitcoin (BTC) long position. A bold move, indeed!

As we have gotten some inquiries, I can confirm that we have unwound our $MSTR/Bitcoin hedged trade as of yesterday’s open.

– James Chanos (@RealJimChanos) November 8, 2025

According to Chanos’ firm, Strategy (MSTR) opened at around $224 on November 7, 2025-down a whopping 50% from its yearly peak. Its market Net Asset Value (mNAV) has taken a nosedive, dropping from 2.50x to 1.23x. A real tragedy for anyone who thought this was a good bet in late 2024.

The firm valued Strategy’s entire operation at $79.5 billion, thanks to its stash of 641,205 BTC, worth about $64.3 billion, but don’t forget the $14.4 billion in net debt that might just rain on their parade.

Chanos is quick to point out that while MSTR’s value could still dip a bit, the main part of this trade is essentially done. The gap between MSTR’s overall value and its Bitcoin holdings has shrunk from an eye-popping $80 billion in late 2024 to a far more pedestrian $15 billion.

Of course, he added that if MSTR decides to issue more shares, this premium could shrink even further, but for now, it seems “sensible” to close the trade. How generous of him to offer such sage advice.

On a brighter note, Pierre Rochard, CEO of The Bitcoin Bond Company, seems to think this is an early sign that the Bitcoin treasury bear market might, just might, be nearing its end. Oh, the hope!

Institutional trends and outlook

Bitcoin Treasuries data shows that public companies now hold a total of about 1,054,735 BTC, which is roughly 4.7% of Bitcoin’s total supply. How lovely. Meanwhile, Metaplanet, a Japanese investment firm, managed to hit its 2025 Bitcoin target by purchasing a modest 5,268 BTC on October 1, bringing its total to 30,823 BTC. And they’re aiming for over 210,000 BTC by 2027. Ambitious, to say the least.

However, Strategy and Metaplanet are both feeling the pain of the bear market, with Metaplanet’s market value falling by a painful 56% since June. Some Bitcoin-holding firms have even been forced to sell off portions of their BTC just to cover their debts. How embarrassing!

But there may be a silver lining. Reports from the United States suggest that lawmakers have finally reached an agreement to end the government shutdown, which has been a major dampener on the markets. Ah, the sweet smell of government compromise.

Meanwhile, MSTR closed at $241.93 on November 7, up 1.99%, and was trading higher in pre-market at $249.85, up 3.27%. Metaplanet, in its usual understated fashion, closed at ¥427.00, up 2.89% (+12.00).

And let’s not forget Bitcoin-because who could? It rose by 3.91% in the past 24 hours, trading around $106,002, with its market capitalization reaching an impressive $2.12 trillion. Even trading volume is up, with 24-hour BTC volume climbing 45% to $70 billion. Looks like optimism is making a comeback in the crypto space, or so we hope. 🍾

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2025-11-10 15:49