End of the Bear Trend? Kynikos Associates Closes Short on Strategy
One of Wall Street’s most famous short-selling firms, Kynikos Associates, has officially closed its bearish position on Michael Saylor’s Strategy (MSTR), hinting that the long-running downturn in Bitcoin-backed equities may be nearing its end.
James Chanos Calls Time on His Strategy Short
James Chanos, founder of Kynikos Associates and legendary critic of over-valued stocks, confirmed that his firm exited its short position in Strategy and simultaneously unwound its long exposure to Bitcoin at the start of trading on November 7. The move came after Strategy’s market Net Asset Value (mNAV) rebounded sharply from recent lows, erasing much of the downside that short sellers had bet on throughout 2025.
“The decline in companies holding large Bitcoin reserves has largely played out,” said Chanos, adding that the market’s risk-reward dynamics had shifted decisively. His statement marks a rare acknowledgment of stabilization in a sector long dominated by volatility and speculative sentiment.
Industry Voices See a Turning Point
Pierre Rochard, CEO of The Bitcoin Bond Company, described the development as “a symbolic end to the bear market for corporate Bitcoin holders.” According to Rochard, institutional sentiment is slowly returning as firms like Strategy demonstrate resilience amid falling volatility and improving liquidity conditions.
Strategy remains the world’s largest corporate holder of Bitcoin, with more than 640,000 BTC on its balance sheet. Despite recent price corrections, the company’s long-term accumulation strategy continues to attract attention from hedge funds and retail investors alike.
What Comes Next for MSTR and Bitcoin Stocks
Analysts view Kynikos Associates’ retreat as an inflection point rather than a full reversal. While Bitcoin’s recent slide below $100,000 triggered broad market anxiety, the closing of high-profile shorts suggests that major players see limited downside from here.
If Bitcoin stabilizes near current levels, equities tied to digital-asset reserves could stage a modest recovery through year-end. For the first time in months, optimism — cautious but real — is returning to the sector.
Editorial Team — CoinBotLab