Chanos Closes Short on MicroStrategy as Bitcoin Treasury Stocks Show Signs of Bottoming

November 10, 2025 — Veteran short-seller Jim Chanos, famed for predicting Enron’s collapse, has closed his 11-month short position against MicroStrategy (MSTR), saying the trade’s thesis has largely played out following a sharp compression in valuation.

Chanos had maintained a short MSTR/long bitcoin (BTC) position, betting that the software firm’s market premium over its bitcoin net asset value (mNAV) would narrow. That premium — once 2.5 times the underlying value of its bitcoin holdings — has since contracted to 1.23, according to a note from Chanos & Co. posted on X.

“MSTR shares are down about 50% from their 2025 highs,” Chanos said, adding that the company’s ongoing stock issuance and declining mNAV multiple made it an appropriate time to close the trade. While he expects the premium could tighten further toward parity with bitcoin’s value, “the core trade has run its course.”

MicroStrategy remains the largest publicly listed bitcoin holder, with 641,205 BTC worth roughly $68 billion at current prices. The company’s shares fell 20% last week to a new 2025 low even as bitcoin rebounded above $105,000, extending its year-to-date gains to about 14%.

The unwind comes amid a bruising year for bitcoin treasury stocks, with peers like Metaplanet (3350) and KindlyMD (NAKA) each plunging more than 80% from record highs. Still, MicroStrategy remains the only major player to consistently trade at a premium to its bitcoin holdings throughout the cycle.

The closing of Chanos’ short — alongside bitcoin’s recent rebound — has prompted speculation that the bitcoin treasury sector may be nearing a bottom. MSTR shares rose 3% in pre-market trading, changing hands around $248.