Chanos, Saylor Shift Bitcoin Trade Tactics as Valuations Fade

Corporate America’s great Bitcoin trade is cracking — and both its architect and one high-profile skeptic are adjusting their bets.

James Chanos, the veteran short-seller, has exited his long-standing wager against Strategy Inc. as the premium between the company’s market value and its Bitcoin holdings narrowed to its tightest in more than a year. He had bet against the stock through a pairs trade — shorting Strategy while going long Bitcoin — on the view that its crypto holdings didn’t justify the inflated share price.

Meanwhile on Monday, Michael Saylor’s firm doubled down. Strategy revealed it had purchased ...