Abraxas Capital Bleeds $190M in Unrealized Losses While Raking in $28M From Funding Rates

According to on-chain monitoring by lookonchain, Abraxas Capital’s two accounts are sitting on staggering unrealized losses surpassing $190 million across multiple digital assets. The firm currently holds 113,819 ETH (valued at approximately $483 million) in short positions alone, accounting for over $144 million of their total losses. Their bearish bets span ETH, BTC, SOL, HYPE, and SUI.

The Hedging Strategy Behind the Numbers

What’s noteworthy here is the context: previous analysis revealed that Abraxas Capital’s aggressive short positions actually function as spot hedging against their long portfolio. During market downturns, this strategy has paradoxically generated substantial unrealized gains, offsetting some of the headline losses we see today.

The Silver Lining: Funding Rate Income

Despite the red ink on paper, there’s an intriguing counterpoint. The firm has collected over $28 million in cumulative funding rate income from these positions—a reminder that in volatile markets, patient shorters can profit from the perpetual futures premium that long-biased traders consistently pay.

The situation illustrates a common misconception in crypto trading: headline losses don’t always tell the full story when positions serve a broader portfolio strategy.