Jane Street is moving away from Strategy

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

But now, things appear 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 raises stake at MicroStrategy

Jane Street cuts down on Strategy

In the fourth quarter of 2025, Jane Street held 951,187 total common shares of Strategy, valued at $144.5 million.

However, there is now a swift and steep reversal. In the quarter, Jane Street cut its Strategy shares by 78% to 209,833 shares valued at $26.2 million.

The Strategy pullback is part of a broader rotation in the first quarter of 2026. Jane Street sharply cut its exposure to spot Bitcoin ETFs during the quarter, trimming its iShares Bitcoin Trust (IBIT) position by roughly 71% and its Fidelity Wise Origin Bitcoin Fund (FBTC) stake by around 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 to Fidelity's Ethereum Fund (FETH), with combined additions of around $82 million across the two products.

In the fourth quarter of 2025, Jane Street held a total of 5,948,399 shares of the ETHA, for a combined value of approximately $133.4 million. By the first quarter of 2026, the composition had shifted dramatically.

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

In the fourth quarter of 2025, Jane Street held a modest 103,181 outright shares of the FETH. By 2026, the position had grown dramatically to 2,090,207 shares valued at approximately $43.6 million, a near-1,927% surge in share count.

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

The rotation comes amid ongoing scrutiny of Jane Street's role in crypto markets. There have been talks that the firm was systematically pushing Bitcoin lower through frequent morning sell-offs using ETF-related trades, the so-called "10 AM Bitcoin Dump," purportedly suppressing prices below $150,000.

Story Continues

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

Related: Jane Street seeks to throw out insider trading lawsuit

Strategy's last quarter miss

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

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

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

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

This single item pushed 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% upside 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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