Have Bitcoin Treasury Holdings Reached Capitulation Levels?

Jim Chanos Closes MicroStrategy Short, Signaling Possible Bottom for Bitcoin Treasury Stocks

November 10, 2025 — Famed short-seller Jim Chanos, best known for predicting Enron’s downfall, has ended his 11-month short position in MicroStrategy (MSTR), suggesting that the prolonged selloff in bitcoin treasury stocks may be stabilizing.

Chanos initiated his short MSTR/long bitcoin (BTC) trade in 2024, betting that MicroStrategy’s valuation would realign with its bitcoin-adjusted net asset value (mNAV). At the time, the company’s market value traded at 2.5 times its underlying bitcoin holdings. That premium has now compressed to 1.23, prompting Chanos & Co. to close the position.

“MSTR shares have fallen about 50% from their 2025 highs,” Chanos said in a post on X, noting that continued share issuance and valuation normalization have met the trade’s objectives. While he expects the premium to eventually narrow closer to parity, Chanos said “the core thesis has played out.”

MicroStrategy, the largest publicly listed holder of bitcoin, holds 641,205 BTC valued at roughly $68 billion. Shares fell 20% last week, even as bitcoin rebounded above $105,000, bringing the asset’s year-to-date gains to 14%.

The unwind follows a bruising stretch for the bitcoin treasury sector, with peers such as Metaplanet (3350) and KindlyMD (NAKA) down more than 80% from record highs. Still, MicroStrategy remains the only major company consistently trading at a premium to its bitcoin holdings.

The closing of Chanos’ short, alongside bitcoin’s rebound, has fueled speculation that bitcoin treasury stocks may be near a bottoming phase. MSTR rose 3% in pre-market trading to $248.