Core Viewpoint - Veteran short seller Jim Chanos has exited his hedged trade on Strategy (NASDAQ:MSTR), which was closely monitored by cryptocurrency and equity market participants [1][2]. Group 1: Trade Details - Chanos's strategy involved shorting Strategy shares while holding a long position in Bitcoin, aiming to exploit the perceived inflated premium between the company's market value and its cryptocurrency assets [2]. - The trade was initiated in December when Strategy's market-to-net-asset-value (mNAV) ratio was approximately 2.50x, which has since decreased significantly to 1.22x as of November 21 [3][4]. Group 2: Market Dynamics - The rationale for the trade was that Strategy's shares were trading at a substantial premium compared to the value of its Bitcoin holdings and operational business, with expectations that this gap would narrow over time due to the company's issuance of common equity [4][6]. - The implied premium, calculated as Strategy's enterprise value minus its Bitcoin holding value, has decreased from a peak of $80 billion in November 2024 and $70 billion in July to approximately $15 billion [5].