Jim Chanos takes opposing bets on Bitcoin and Strategy
Jim Chanos, a prominent short-seller, announced a strategy of shorting shares of Strategy (formerly MicroStrategy) while buying Bitcoin. He perceives a significant price mismatch, likening it to buying something for $1 and selling it for $2.50. Chanos criticized Strategy for promoting Bitcoin through a corporate structure, suggesting that this leads to overvaluation and excessive speculation among retail investors. He noted that shorting Strategy has historically resulted in substantial losses for investors, with $3.3 billion lost in 2024 alone as the stock price rose. Strategy currently holds approximately 568,840 Bitcoin, valued at around $59 billion, and its stock has surged by 1,500% since 2020. Chanos has previously expressed skepticism about Bitcoin, labeling it a “libertarian fantasy” and criticizing its role in illicit activities. Despite his past critiques, he now views direct Bitcoin ownership as preferable to investing in companies with large Bitcoin holdings.
