This paper explores the duality between near-horizon microstates of black holes obtained as orbifolds of a subset of AdS₃ and the states of a conformal field theory (CFT). The SL(2, R)ₗ ⊗ SL(2, R)ᵣ invariant vacuum on AdS₃ corresponds to the NS-NS vacuum of the CFT. Orbifolding produces a density matrix whose temperature and entropy match those of the black hole. For string theory examples, the spectrum of chiral primaries agrees with the spectrum of multi-particle BPS states for particle numbers less than the central charge. A stringy exclusion principle arises from the upper bound on the U(1) charge of chiral primaries, limiting the occupation numbers of bosonic BPS particle modes. This bound is nonperturbative and cannot be seen in perturbation theory about AdS₃. The analysis also reveals a relationship between the orbifold procedure used to construct the BTZ black hole from AdS₃ and the density matrix of the CFT. The CFT lives on the cylindrical boundary of AdS₃, with the conformal field theory in the vacuum with respect to these coordinates. The thermal nature of the black hole's mixed quantum state is explained by the transformation from Minkowski to Rindler coordinates. The paper also discusses the Euclidean black hole partition function and its relation to the CFT. The conformal field theory partition function is shown to correspond to the black hole partition function, with the modular parameter of the torus playing a key role. The paper concludes with a discussion of the Virasoro generators and their action on AdS₃, as well as the stringy exclusion principle and its implications for the maximum occupation number of bosonic BPS particle modes. The results highlight the deep connection between string theory, conformal field theory, and black hole physics in AdS₃.This paper explores the duality between near-horizon microstates of black holes obtained as orbifolds of a subset of AdS₃ and the states of a conformal field theory (CFT). The SL(2, R)ₗ ⊗ SL(2, R)ᵣ invariant vacuum on AdS₃ corresponds to the NS-NS vacuum of the CFT. Orbifolding produces a density matrix whose temperature and entropy match those of the black hole. For string theory examples, the spectrum of chiral primaries agrees with the spectrum of multi-particle BPS states for particle numbers less than the central charge. A stringy exclusion principle arises from the upper bound on the U(1) charge of chiral primaries, limiting the occupation numbers of bosonic BPS particle modes. This bound is nonperturbative and cannot be seen in perturbation theory about AdS₃. The analysis also reveals a relationship between the orbifold procedure used to construct the BTZ black hole from AdS₃ and the density matrix of the CFT. The CFT lives on the cylindrical boundary of AdS₃, with the conformal field theory in the vacuum with respect to these coordinates. The thermal nature of the black hole's mixed quantum state is explained by the transformation from Minkowski to Rindler coordinates. The paper also discusses the Euclidean black hole partition function and its relation to the CFT. The conformal field theory partition function is shown to correspond to the black hole partition function, with the modular parameter of the torus playing a key role. The paper concludes with a discussion of the Virasoro generators and their action on AdS₃, as well as the stringy exclusion principle and its implications for the maximum occupation number of bosonic BPS particle modes. The results highlight the deep connection between string theory, conformal field theory, and black hole physics in AdS₃.