Bitcoins <\/p>\n
Prominent short-seller Jim Chanos, once a vocal critic of Bitcoin and cryptocurrencies, revealed a new trading play that involves shorting shares of Strategy (formerly MicroStrategy) and buying Bitcoin.<\/p>\n
At the Sohn Investment Conference in New York, Chanos told<\/a> CNBC he\u2019s \u201cselling MicroStrategy stock and buying Bitcoin.\u201d The investor described the move as buying something for $1 and selling something for $2.50, referring to what he sees as a significant price mismatch.<\/p>\n Chanos argued that Strategy is selling the idea of buying Bitcoin (BTC<\/a>) in a corporate structure, and that other companies are following suit in hopes of receiving a similar market premium.<\/p>\n Chanos said this was \u201cridiculous.\u201d He described his trade as \u201ca good barometer of not only just the arbitrage itself, but I think of retail speculation.\u201d<\/p>\n <\/template><\/p>\n Chanos\u2019 recent move assumes investors overpay for Bitcoin exposure through corporate wrappers like Strategy and other firms that follow its Bitcoin accumulation blueprint. The investor\u2019s move reflects a stance that purchasing Bitcoin directly would be better than purchasing Strategy\u2019s stocks for indirect Bitcoin exposure.\u00a0<\/p>\n Chanos\u2019 move suggests that holding Bitcoin through companies reflects excessive speculation and risk mispricing. It assumes that retail investors\u2019 idea of having Bitcoin indirectly through corporate wrappers can inflate the company\u2019s stock valuations.\u00a0<\/p>\n While shorting Strategy may seem like a good idea, investors have already lost<\/a> billions shorting Saylor\u2019s company. In 2024, investors who bet against the firm lost about $3.3 billion as the stock rose.\u00a0<\/p>\n As of May 2025, Strategy holds about 568,840 Bitcoin, valued at around $59 billion<\/a>. Since the company started accumulating Bitcoin in 2020, its stock price has surged by 1,500%, outperforming the S&P 500\u2019s gains during the same period.\u00a0<\/p>\n In a recently released documentary from the Financial Times, Strategy analyst Jeff Walton said that the company\u2019s Bitcoin holdings would help it<\/a> become the \u201cnumber one publicly traded equity in the entire market\u201d in the future.<\/p>\n Chanos has not always been favorable toward Bitcoin. In a 2018 interview, Chanos described<\/a> Bitcoin as a \u201clibertarian fantasy.\u201d\u00a0<\/p>\n Chanos said that having digital currency as a store of value in the worst-case scenario wouldn\u2019t work. The investor said that if fiat currency brings the world down, the last thing he\u2019d want to own is Bitcoin. \u201cFood would work the best,\u201d he said.\u00a0<\/p>\n He also criticized Bitcoin for enabling illicit activity, calling<\/a> the crypto sector \u201cthe dark side of finance\u201d in a 2023 interview, and accusing the industry of facilitating tax evasion and money laundering.<\/p>\n Chanos also expressed skepticism about spot Bitcoin exchange-traded funds (ETFs), saying that Wall Street needs to keep the public interested in crypto to profit from the fees.\u00a0<\/p>\n Despite those critiques, Chanos now appears to see value in holding Bitcoin directly, particularly in contrast to investing in public companies with large BTC treasuries.<\/p>\nBitcoins Selling Strategy stock to buy Bitcoin<\/h2>\n
Bitcoins Chanos previously called Bitcoin a \u201clibertarian fantasy\u201d <\/h2>\n