Short-selling firm Kynikos closes out Strategy hedge trade
Jinse Finance reported that Jim Chanos, President and Founder of the short-selling firm Kynikos Associates, announced that he has closed his hedged trade between Strategy stocks and bitcoin. This trade was established in May, betting on the narrowing premium between MSTR's stock price and the value of its bitcoin holdings. Data shows that MSTR's price-to-book ratio has dropped from a yearly high of 1.8 times to the current 1.1 times, with the premium space shrinking by more than 50%. Chanos has repeatedly warned that companies holding bitcoin face SPAC-like speculative risks, arguing that their valuation premiums lack fundamental support. Chanos believes that the "copycat" trades of other bitcoin treasury companies are based on financial engineering, cheap capital, and market frenzy, rather than on business fundamentals.
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