James Chanos, a prominent short-seller, has closed his short position against Strategy after the firm's premium over its bitcoin holdings decreased significantly. The premium narrowed to 1.23x from a peak of 2.5x earlier in 2025. Strategy, which holds over 641,000 BTC, experienced a stock price decline of approximately 50% from its 2025 high, while bitcoin's spot price remained around $63,405. The reduction in premium, from about $80 billion to $15 billion, supported Chanos' bearish outlook. He initiated the short position in May 2025, simultaneously going long on bitcoin, anticipating a price compression towards parity with Strategy's underlying assets.