Chanos Ends 11-Month Short on MicroStrategy as Bitcoin Treasury Stocks Stabilize
November 10, 2025 — Renowned short-seller Jim Chanos, best known for calling Enron’s collapse, has closed his 11-month short position in MicroStrategy (MSTR), signaling that the sharp correction in bitcoin treasury stocks may be nearing exhaustion.
Chanos had held a short MSTR/long bitcoin (BTC) trade since late 2024, betting that MicroStrategy’s valuation premium to its bitcoin-adjusted net asset value (mNAV) would narrow. That premium has now fallen from 2.5 times to 1.23, according to a note from Chanos & Co. posted on X.
“MSTR has dropped about 50% from its 2025 highs,” Chanos wrote, adding that the company’s ongoing share issuance and compression in valuation multiples have achieved the trade’s objectives. While he expects the premium could eventually reach parity with bitcoin, he said “the core thesis has largely played out.”
MicroStrategy, the largest corporate holder of bitcoin, owns 641,205 BTC valued at roughly $68 billion. Despite bitcoin’s rebound above $105,000, MSTR shares tumbled 20% last week, extending a steep drawdown that has mirrored declines across the bitcoin treasury sector.
Rivals such as Metaplanet (3350) and KindlyMD (NAKA) have plunged more than 80% from their peaks, though MicroStrategy remains the only firm that has consistently traded at a premium to its bitcoin holdings.
The unwinding of Chanos’ short — combined with bitcoin’s recent recovery — has fueled speculation that bitcoin treasury stocks may be approaching a bottom. MSTR was last up 3% pre-market, trading near $248.
