Investment firm Kynikos Associates has closed its short position against Strategy’s stock and also exited its Bitcoin long. Founder Jim Chanos announced the move — and the market sees this as a potential sign that the de-rating phase of public “Bitcoin companies” may finally be ending.
Strategy’s Premium “Comes Back to Earth”
Chanos explained that the reason for closing the trade was a decline in Strategy’s premium to marked net asset value (mNAV) — down to 1.23x.
“It makes sense to close the trade when mNAV is below 1.25x. Back in July 2025 this ratio was around 2.0x,” he wrote.
The Strategy premium is the gap between the company’s market cap and the value of its Bitcoin reserves. Strategy holds 641,205 BTC. According to Chanos, the premium dropped from ~$70 billion in summer to ~$15 billion now. The market, in his view, is valuing the company more fairly. “The idea has mostly played out,” he added.
Pierre Rochard, CEO of The Bitcoin Bond Company, said the move looks like a classic “reversal signal”:
“The bear market for Bitcoin companies is gradually coming to an end.”
Most DATs Have Gone Through Capitulation
In recent months, shares of many of the roughly 200 public companies holding BTC on balance sheet saw steep drawdowns:
- Strategy: -43% (from $122.1B in July to $69.5B)
- Metaplanet (Japan): -56% since June 21
Some companies even had to sell part of their Bitcoin treasuries to service debt — a classic late-cycle capitulation phase.
An additional pressure point was the U.S. government shutdown. But media outlets then reported that a budget deal had been reached. On the news, Bitcoin jumped 2% in about 50 minutes — up to $106,430.
“Long DAT, Short Futures”: Old Basis Trading, New Format
CoinFund President Chris Perkins noted that the launch of regulated futures on altcoins has unlocked new yield-generation opportunities for traditional investors.
The essence of the strategy:
- buy stock of a public company that holds digital assets on balance sheet (DAT)
- short the futures contract on the same underlying cryptoasset
This allows capturing the basis spread without holding tokens directly.
For example, Strategy’s shares have risen 22x since the beginning of its Bitcoin accumulation — while BTC itself is “only” up 10x over the same period.
Why This Became Possible
This shift happened after a change in the SEC’s stance. New Chair Paul Atkins stated that “the majority of tokens are not securities.”
This opened the door for regulated futures on multiple altcoins — and boosted market liquidity.
Not Risk-Free
If a DAT’s market cap declines relative to the value of its crypto holdings, a short futures hedge might not fully offset the losses.
However, Perkins believes these instruments contribute to the “normalization” of crypto investing on Wall Street.
“This could become the trade of 2026,” he concluded.
At the same time, Bitwise CIO Matt Hougan pointed out the inefficiency of digital asset treasuries as an asset class — meaning the market will likely continue to separate strong names from weak ones.
