Jane Street moves away from strategy

Jane Street moves away from strategy
Jane Street moves away from strategy

Just a quarter ago, Jane Street looked like one of Michael Saylor’s most committed institutional backers.

But now things seem to be changing. In their latest filing, Jane Street revealed that they have significantly reduced their position in Strategy (NASDAQ: MSTR).

Related: America’s oldest bank increases stake in MicroStrategy

Jane Street reduces strategy

As of the fourth quarter of 2025, Jane Street owned a total of 951,187 shares of Strategy common stock, valued at $144.5 million.

However, a rapid and pronounced change is now occurring. In the quarter, Jane Street cut its strategy holdings by 78% to 209,833 shares valued at $26.2 million.

The strategy’s pullback is part of a broader rotation in the first quarter of 2026. Jane Street sharply reduced its exposure to spot Bitcoin ETFs during the quarter, trimming its position in iShares Bitcoin Trust (IBIT) by about 71% and its stake in Fidelity Wise Origin Bitcoin Fund (FBTC) by about 60%.

It also reduced exposure to several Bitcoin (BTC) mining companies, including IREN (NASDAQ: IREN), Cipher Mining (NASDAQ: CIFR), TeraWulf (NASDAQ: WULF), and Core Scientific (NASDAQ: CORZ).

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Bitcoin out, Ethereum in

On the other side of the ledger, Jane Street increased its position in BlackRock’s iShares Ethereum Trust (ETHA) and added it to Fidelity’s Ethereum Fund (FETH), with combined additions of around $82 million in the two products.

As of the fourth quarter of 2025, Jane Street owned a total of 5,948,399 shares of ETHA, worth a combined value of approximately $133.4 million. By the first quarter of 2026, the composition had changed dramatically.

The net result was an overall increase of 5,145,028 shares, which was an 87% increase in total absolute holdings. This brought the combined position for the quarter to 11,093,427 shares valued at approximately $175.6 million.

In Q4 2025, Jane Street owned a modest 103,181 absolute shares of FETH. By 2026, the position had grown dramatically to 2,090,207 shares valued at approximately $43.6 million, an increase of nearly 1,927% in the share count.

Combined with the $42.2 million increase in ETHA holdings, Jane Street’s total additions in both Ethereum ETFs amounted to approximately $82 million in the first quarter of 2026.

The rotation comes amid continued scrutiny of Jane Street’s role in the crypto markets. There has been talk that the company was systematically pushing Bitcoin lower through frequent morning liquidations using ETF-related trades, the so-called “10 AM Bitcoin Dump”, allegedly suppressing prices below $150,000.

Jane Street has not publicly addressed the allegations, and analysts have largely dismissed the theory as difficult to substantiate.

Related: Jane Street Seeks to Dismiss Insider Trading Lawsuit

The last failed quarter of the strategy

Strategy released its first quarter 2026 results on May 5 after markets closed, revealing a company whose financial performance has been almost entirely tied to Bitcoin price movements.

The company posted a net loss of $12.54 billion, or $38.25 per diluted common share, during the quarter.

On the revenue side, results were largely in line with expectations. The strategy generated $124.3 million in total revenue.

The main driver of the loss was an unrealized loss of $14.46 billion on Strategy’s Bitcoin holdings, stemming from a sharp drop in BTC prices that briefly fell below $62,000 during a sell-off in February, the lowest point since April 2025.

This single item raised the company’s operating loss to $14.47 billion for the quarter, a substantial deterioration from the $5.92 billion operating loss reported in the first quarter of 2025.

Related: Analysts See 111% Rise for MicroStrategy Despite Q1 Loss

This story was originally published by TheStreet on May 15, 2026, where it first appeared in the MARKETS section. Add TheStreet as a preferred source by clicking here.

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