Jim Chanos withdrew his short strategy against Bitcoin as the

Prominent short seller Jim Chanos closed his close bet on the strategy versus Bitcoin, saying the valuation gap that once made the deal so attractive has now largely disappeared.

Chanos said in a social media post on X on Saturday that he had withdrawn the strategy's short and long Bitcoin trades by market opening on Friday. The move came after the strategy's shares fell nearly 50% from their 2025 peak, wiping out the premium that investors were once willing to pay for its massive Bitcoin holdings.

The software company has purchased billions of dollars worth of Bitcoin in recent years and has become the largest corporate holder of the leading cryptocurrency. Until earlier this year, this strategy, known as MicroStrategy, used leverage to increase its Bitcoin reserves and at one point traded at a significant premium to its Bitcoin holdings.

Prominent short seller Jim Chanos closed his closely held bet against Bitcoin, stating that the valuation gap that once made the trade so attractive had now largely disappeared.

In a social media post on X on Saturday, Chanos said he had closed his paired trade by shorting the strategy and going long on Bitcoin by market opening on Friday. This move came after the strategy's shares fell nearly 50% from their 2025 peak, wiping out the premium that investors were once willing to pay for its massive Bitcoin holdings.

The software company has purchased billions of dollars worth of Bitcoin in recent years, becoming the largest corporate holder of the leading cryptocurrency. The strategy, known as MicroStrategy until earlier this year, used leverage to increase its Bitcoin reserves and at one point traded at a significant premium to its Bitcoin holdings.