Jim Chanos, who previously profited from shorting MSTR last year, identifies an 80 billion dollar arbitrage opportunity in Strategy, Michael Saylor’s bitcoin accumulation company. The strategy involves shorting MSTR shares while taking a proportional long position in bitcoin, calibrated to match the company’s BTC reserves. MSTR stock currently trades with a fluctuating premium to its net asset value in bitcoin, with this mNAV premium ranging between 0.5x and 3.7x since 2020. Chanos has not confirmed opening a new short position, nor disclosed his hedge ratio or the exact calculation behind his 80 billion dollar estimate.
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