MSTR-Strategy Arbitrage Opportunity Stands at $80 Billion

Famed short-seller James Chanos believes that business intelligence firm MSTR and its Bitcoin holdings present an $80B arbitrage opportunity.

MSTR owns a significant amount of Bitcoin, but the stock market can value the company at substantially less than the market value of those holdings. As of August 18, MSTR held approximately 847,363 BTC, which are worth around $54 billion at current prices.

However, Chanos notes that owning MSTR gives exposure to Bitcoin as well as Strategy's debt, preferred securities, financing costs, software business, and management decisions. This means that the stock market is pricing in more than just the value of the underlying Bitcoin holdings.