Recent developments suggest that Bitcoin treasury companies may be nearing an end to their bear market period. This follows news from Kynikos Associates, a prominent investment firm, which closed its short position against Strategy, the largest corporate Bitcoin holding company. James Chanos, founder of Kynikos, revealed this move on Friday, unwinding his short position on Michael Saylor’s Strategy (MSTR) and simultaneously establishing a long position in Bitcoin itself. Pierre Rochard, CEO of The Bitcoin Bond Company, commented that this bear market may be nearing its end. He cited declining market valuations for companies holding Bitcoin as evidence, with the mNAV of Strategy falling to 1.23x from around 2.0x in July. Additionally, Chanos pointed out that MSTR’s implied premium, calculated as its enterprise value minus the value of its 641,205 BTC stash, has declined significantly from $70 billion to $15 billion, suggesting a potential improvement in valuation for the company. Although further mNAV compression might occur, particularly if they issue more common equity, Chanos believes the current thesis is largely validated. Rochard commented that this development signifies a possible market reversal. urther, publicly traded companies holding Bitcoin on their balance sheets have witnessed significant declines over recent months, leading some analysts to question the long-term sustainability of these strategies. Strategy has been particularly impacted, with its market cap falling over 43% from $122.1 billion in July to $69.5 billion as of Friday. Metaplanet, a top performer on the Tokyo Stock Exchange at the beginning of 2025, has experienced a market cap decline of 56% since June 21. Other companies involved in Bitcoin acquisitions have even resorted to selling some of their BTC holdings to cover outstanding debt. The crypto market’s recent downturn can be partly attributed to the U.S. government shutdown. However, news of the Senate reaching an agreement on budget bills has sparked a potential resurgence in sentiment toward the crypto market. Bitcoin saw a 2% increase to $106,430 within just 50 minutes following these reports, indicating that the return of governmental normalcy might boost market confidence.