Shares in Bitcoin treasury companies could be nearing the end of a period of dampened price action after an investment firm said it closed its short position against Strategy, the largest corporate Bitcoin holding company.

Kynikos Associates founder James Chanos

Shares in many of the 200 publicly traded companies holding Bitcoin on their balance sheets have tumbled in recent months, which has led some analysts to doubt the sustainability of Bitcoin treasury strategies.

MSTR, Metaplanet down massively from mid-year

Strategy has been the hardest hit in total value terms, with its market cap falling over 43% from $122.1 billion in July to $69.5 billion as of Friday.

Metaplanet, one of the best-performing stocks on the Tokyo Stock Exchange to start 2025, has similarly seen its market cap slashed by 56% since June 21.

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Other Bitcoin buying companies have even had to offload some of their BTC holdings to pay outstanding debt.

Crypto market pressure could soon ease

One of the biggest factors holding the market back has been the US government shutdown,  however, multiple US media outlets reportedt on Sunday that the Senate reached an agreement to pass a package of budget bills to end the shutdown.

Bitcoin bounced 2% to $106,430 within 50 minutes of the reports, suggesting that the government reopening could boost sentiment toward the crypto market.

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