Investor Jim Chanos has ended his short position on MicroStrategy (MSTR) stock and long Bitcoin trade as of November 7, 2025.
The decision follows a steep drop in MSTR stock price and a major fall in its market net asset value (mNAV), signaling that the trade has run its course.
Chanos Ends the MSTR-Bitcoin Strategy After Big Price Drop
In a major development Jim Chanos, head of Chanos & Co, confirmed that his firm has closed its short MSTR and long Bitcoin hedge.
He made the announcement after MSTR stock fell to about $241.93, down roughly 48% from its 2025 peak.
The firm’s note to clients said the mNAV ratio has dropped to 1.23 times as of November 7, 2025. This is a sharp fall from 2.50 times when the strategy started in December 2024.
The report stated that the trade had largely reached its goal. The implied premium of MSTR stock, which is its value above the worth of its Bitcoin holdings, has fallen to around $15 billion.
That premium was as high as $80 billion in November 2024 and $70 billion in July 2025.
The drop shows how much the market value has narrowed compared to the company’s Bitcoin assets.
Chanos & Co had advised clients to go short on MSTR while going long on Bitcoin when the company’s stock traded well above the value of its Bitcoin.
The note now says it is “prudent to cover the trade” because the mNAV has already moved below 1.25 times.
Furthermore, the firm added that while there could still be some room for more compression, most of the trade’s gains have already been achieved.
MSTR Stock and Bitcoin Holdings Show Sharp Changes
According to the firm’s data, MicroStrategy now holds about 641,205 Bitcoin. Strategy recently acquired 397 BTC for $45.6 million.
At a Bitcoin price of around $100,300, the company’s BTC holdings are worth roughly $64.1 billion.
The report also shows that MSTR’s net debt is about $14.4 billion and that its total market value is near $65.1 billion.
MSTR stock has fallen sharply over the years. It now trades between $219 and $244 after reaching as high as $542.99 earlier in 2025.
Its market value and share price have been moving closely with Bitcoin’s price swings.
Market watchers mentioned that this is because the company’s main strategy depends on buying and holding large amounts of Bitcoin. Consequently, MSTR stock reacts more strongly to Bitcoin’s ups and downs.
Chanos’ exit from the hedge trade came as the gap between MSTR’s market price and the value of its Bitcoin holdings became much smaller.
The company’s enterprise value, after subtracting its Bitcoin, has also gone down sharply.
Chanos’ report said the trade worked well as MSTR continued to issue new shares, which reduced the premium over time.
Market Views on the End of the Trade
Market watchers see the end of the Chanos hedge as a possible sign of change for Bitcoin-related stocks.
On this, Pierre Rochard, a Bitcoin analyst, commented that the bear market for Bitcoin treasury companies is gradually coming to an end.
He added that there could still be volatility but that such developments often signal a shift in the market trend.
At the close of trading on November 7, MSTR stock stood at $241.93, up about 2% for the day.
After-hours trading saw a small dip to $241.40. The company’s total market capitalization is around $69.5 billion.
Interestingly, Chanos joked in a post on X that he would “let Boaz take the discount side of the trade,” referring to another investor, Boaz Weinstein.
His firm’s decision to unwind the trade shows that the early thesis of overvaluation in MSTR has largely played out.