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Is the Bitcoin Winter Finally Thawing for Crypto Stocks? One Investment Firm Bets Yes.
Shares of companies holding significant Bitcoin reserves may be poised for a comeback, hinting at a potential end to their recent price slump. Fueling this speculation is news that one investment firm has closed its short position against MicroStrategy, the publicly traded giant with the largest Bitcoin hoard. Could this be the turning of the tide for Bitcoin-linked equities?
James Chanos, the notorious short-seller and Kynikos Associates founder, made a surprising move last Friday: He blinked in the face of Michael Saylor’s Bitcoin strategy. Chanos revealed Sunday that he’d closed out his firm’s short position against MicroStrategy (MSTR) and simultaneously exited a long position on Bitcoin (BTC) at the market’s opening bell. Has the bear finally surrendered to the Bitcoin bull?
“Brace yourselves, Bitcoin bulls! Pierre Rochard, CEO of The Bitcoin Bond Company, signals the chilling crypto winter’s thaw, declaring, ‘The Bitcoin treasury company bear market is gradually coming to an end!'”
Hedge fund titan Jim Chanos is circling Strategy Corp., and what he’s seeing isn’t pretty. The stock’s taken a beating, hemorrhaging roughly half its value since its projected 2025 peak. Even more telling? Strategy’s market Net Asset Value has shrunk to a meager 1.23x – a shadow of its former self.
“Chanos slammed the door on this trade, advising a cover with mNAV below 1.25x – a stark plunge from its ~2.0x perch just last July.”
MicroStrategy’s allure, once a $70 billion premium beyond its 641,205 Bitcoin hoard this July, has evaporated to a mere $15 billion. Is the market finally seeing MSTR’s true worth, stripped of its speculative sheen?
“The MSTR trade? Chanos declares ‘game over,’ though he cautions that aggressive equity issuance could still pinch profits.”
“This is the kind of signal you want to see for a reversal,” said Rochard.
Source: Pierre Rochard
Bitcoin’s corporate embrace is facing a frosty reception on Wall Street. As the crypto winter deepens, shares of the 200 publicly traded companies holding Bitcoin have plummeted, fueling skepticism about the long-term viability of their Bitcoin treasury strategies. Are these companies holding onto a sinking asset, or are they weathering the storm for future gains?
MSTR, Metaplanet down massively from mid-year
Strategy consulting firms have taken a brutal beating. Once titans commanding a $122.1 billion market, their combined worth has plummeted by a staggering 43% in mere months, leaving them bruised and battered at $69.5 billion as of Friday.
Metaplanet’s stellar start to 2025 on the Tokyo Stock Exchange has come crashing down. Since June 21st, the company’s market capitalization has been decimated, plummeting a staggering 56%.
Related: Can Bitcoin bulls avoid the cycle’s fourth ‘death cross’ at $102K?
Other Bitcoin buying companies have even had to offload some of their BTC holdings to pay outstanding debt.
Crypto market pressure could soon ease
The market’s been shackled lately, largely thanks to the US government shutdown. But hold on Sunday brought a glimmer of hope! Multiple US media outlets are buzzing that the Senate hammered out a deal on a package of budget bills, potentially pulling the plug on the shutdown saga.
Bitcoin surged $2,000 in under an hour, hitting $106,430 after whispers of a government economic restart rippled through the market. Is this the catalyst that reignites the crypto bull run?
Magazine: Cliff bought 2 homes with Bitcoin mortgages: Clever… or insane?
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