Short Seller Chanos Closes Strategy Position, Signaling Potential Turning Point for Bitcoin Treasury Companies

James Chanos closed his short position against hedge fund company Strategy on November 7, 2025, marking a significant turning point in the fortunes of Bitcoin treasury companies. According to Cointelegraph, Chanos unwound both his short positions on Strategy and his long position on Bitcoin. This decision follows Strategy shares plummeting 50% from their peak in early 2025. Chanos’s rationale for covering the trade lies in the firm’s Net Asset Value (NAV) falling to 1.23x, prompting him to sell to secure gains below a crucial 1.25x threshold.