Veteran investor Jim Chanos has closed out his long-standing short position against Strategy Inc, according to a report by Bloomberg. The wager had focused on Strategy’s crypto holdings.
Through a pairs trade, Chanos took a long position on bitcoin while shorting Strategy, on the view that the firm’s share price was not justified by its crypto holdings.
The move comes at a time when the arbitrage spread between Strategy’s stock and its bitcoin exposure narrowed to its tightest point in more than a year. The firm is continuing to accumulate bitcoin, announcing more purchases on Monday. It is reportedly looking to new investors however, with recent preferred share sales placing a greater emphasis on European markets.
