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Short seller Jim Chanos closed a pairs trade that went long bitcoin and short Strategy’s common stock, betting the company’s premium to its bitcoin holdings would shrink. It has: from nearly three times net asset value in November to about 1.2 times, while bitcoin rose roughly a third over 12 months and Strategy’s shares fell by more than a quarter. The move underscores Strategy’s funding strains — heavy convertibles and costly preferred stock, over $700mn in annual service costs, no operating cash flow — and lingering doubts about its claim of amplified bitcoin.

Prepared by Christopher Adams and reviewed by editorial team.