Chanos Exits MicroStrategy Short as Bitcoin Treasury Stocks Find a Floor
November 10, 2025 — Veteran short-seller Jim Chanos, best known for exposing Enron’s collapse, has closed his 11-month short position in MicroStrategy (MSTR), suggesting the prolonged sell-off in bitcoin treasury stocks may be nearing its end.
Chanos, who had been short MSTR while long bitcoin (BTC), initiated the trade when the company’s market premium over its bitcoin-adjusted net asset value (mNAV) was excessively high. That premium, which stood at 2.5 times last year, has now compressed to 1.23, prompting Chanos & Co. to close out the trade.
In a post on X, Chanos noted that MicroStrategy shares have fallen roughly 50% from their 2025 peak. He credited the company’s continued stock issuance and valuation normalization for achieving the short’s objective. While some further mNAV compression is possible, he said “the main thesis has run its course.”
MicroStrategy, based in Tysons Corner, Virginia, holds 641,205 BTC valued at approximately $68 billion, making it the largest publicly traded corporate holder of bitcoin. Its shares slid 20% last week, even as bitcoin rebounded above $105,000, extending the cryptocurrency’s year-to-date gain to 14%.
The move comes amid a punishing year for bitcoin treasury firms, with rivals Metaplanet (3350) and KindlyMD (NAKA) down more than 80% from their highs. Despite the drawdown, MicroStrategy remains the only major firm consistently trading at a premium to its underlying bitcoin holdings.
With Chanos unwinding his short and bitcoin showing signs of stabilization, analysts say the bitcoin treasury sector could be approaching a bottom. MSTR shares were up 3% in pre-market trading, changing hands near $248.
