Is This the Signal That Bitcoin Treasury Firms Are Set to Rebound?

Jim Chanos Closes MicroStrategy Short as Bitcoin Treasury Stocks Show Signs of Recovery

November 10, 2025 — Legendary short-seller Jim Chanos, famous for uncovering Enron’s fraud, has exited his 11-month short position against MicroStrategy (MSTR), marking what could be a turning point for bitcoin treasury stocks after months of steep declines.

Chanos had maintained a short MSTR/long bitcoin (BTC) position since 2024, betting that MicroStrategy’s market valuation — once trading at 2.5 times its bitcoin-adjusted net asset value (mNAV) — would compress. In a note posted on X, Chanos said the premium has now narrowed to 1.23, prompting him to close the position.

“MSTR has fallen roughly 50% from its 2025 highs,” he wrote, noting that continued share issuance and valuation normalization have achieved the trade’s objectives. While he believes the premium could narrow further toward parity with bitcoin’s value, Chanos said the main thesis has “largely played out.”

MicroStrategy remains the largest public holder of bitcoin, with 641,205 BTC worth around $68 billion. Shares fell 20% last week, even as bitcoin rebounded above $105,000, extending its year-to-date gains to roughly 14%.

The move comes after a brutal stretch for bitcoin treasury firms, with peers such as Metaplanet (3350) and KindlyMD (NAKA) plunging more than 80% from record highs. Still, MicroStrategy continues to trade at a premium to its underlying bitcoin — a rarity among corporate holders this cycle.

Chanos’ decision to unwind his short, coupled with bitcoin’s recovery, is being read by some analysts as a potential bottoming signal for the sector. MSTR shares were up 3% pre-market at $248.