Abraxas Capital has staged a sharp reversal in its cross-market trading book, reporting $12 million in profit from short oil positions over the past week. The turnaround followed a ceasefire announcement that reshaped market sentiment and helped the firm recover from an earlier $9.7 million unrealized loss.
Short oil, long crypto strategy pays off
The firm has been running a “short oil, long crypto” strategy, pairing bearish exposure to crude with bullish positioning in digital assets. Based on the latest update, Abraxas Capital is still actively managing the trade and currently holds an unrealized profit of $8.7 million, suggesting the broader position remains in positive territory.
Total exposure stands at $152 million
Its combined holdings are reported at roughly $152 million. Of that amount, about $126 million is tied to short positions in Brent and WTI crude, while $26.1 million is allocated to long positions in the crypto market. The structure indicates that oil remains the dominant macro bet, with crypto serving as the long side of the broader strategy.
Brent and WTI shorts were both reduced
On the position level, the BRENTOIL short was cut from $92 million to $78 million, while the WTICRUDE short was trimmed from $51 million to $48.5 million. Both positions were held with 5x leverage. The reductions may reflect partial profit-taking or risk management after the recent move in the market, even as the firm keeps meaningful downside exposure to crude prices.
The latest figures highlight how event-driven macro trades can shift quickly when geopolitical developments alter market direction. While Abraxas Capital has moved decisively back into profit, the leveraged nature of the positions means future performance will still depend heavily on continued volatility in both oil and crypto markets.