James Chanos has closed his short position on Strategy, ending his well-known MSTR/Bitcoin pair trade
The post James Chanos has closed his short position on Strategy, ending his well-known MSTR/Bitcoin pair trade appeared on BitcoinEthereumNews.com.
James Chanos, the famed short-seller best known for calling out Enron two decades ago, has closed one of his most talked-about crypto trades, unwinding his short position in Strategy (formerly MicroStrategy). Chanos, who has been known for buying Bitcoin and shorting Strategy, confirmed the exit in a post on X, saying, “As we have gotten some inquiries, I can confirm that we have unwound our $MSTR/Bitcoin hedged trade as of yesterday’s open.” The decision marks the end of an 11-month bet that Strategy’s stock was overvalued relative to the Bitcoin it holds on its balance sheet. The pair trade, recommended in December 2024 at Chanos & Co.’s annual Bears in Hibernation conference, involved shorting Strategy shares against a long position in Bitcoin. At the time, Strategy traded at 2.5 times its market-adjusted net asset value (mNAV). Arbitrage thesis fulfilled The short bet proved exceptionally profitable. Strategy’s mNAV has now fallen to 1.23x, crossing Chanos’s pre-set cover threshold of 1.25x. “At today’s opening prices, MSTR (~$224) is down roughly 50% from its 2025 peak,” the firm said in an investor note shared alongside Chanos’s post. “The implied premium (MSTR EV less BTC holding value) is currently ~$15 billion, down from a peak of $80 billion in November 2024.” Chanos has been vocal in his criticism of Strategy’s premium and frequent equity issuance, reportedly calling it financial gibberish. “While we still believe there is more room for mNAV compression, the thesis has largely played out,” the firm wrote. “We recommend letting others chase the last leg of the trade as MSTR inevitably marches towards a 1.0x mNAV.” Strategy’s market capitalization has fallen by over 14% from last year, when it was valued at over $80.8 billion. The current decline in Bitcoin prices, currently trading around $102,000, is also impacting Strategy’s treasury and…
Filed under: News - @ November 8, 2025 10:21 pm