Famous short-seller Jim Chanos, lengthy recognized for his skepticism towards Bitcoin and crypto markets, has revealed a brand new buying and selling place that flips his previous criticisms on their head.
Talking on the Sohn Funding Convention in New York, Chanos instructed CNBC he’s now shorting shares of Technique (previously MicroStrategy) whereas concurrently shopping for Bitcoin immediately.
Describing the commerce as “promoting one thing for $2.50 and shopping for one thing for $1,” Chanos believes there’s a vital mispricing between Bitcoin and the fairness of companies holding it.
Chanos: Technique Inventory Overvalued for Simply Holding Bitcoin
He argues that firms like Technique are commanding an outsized market premium merely for holding Bitcoin on their stability sheets.
“It’s ridiculous,” Chanos stated, characterizing his commerce as each an arbitrage play and a commentary on what he views as extreme retail hypothesis.
MicroStrategy, now rebranded as Technique, is led by govt chairman Michael Saylor and is the world’s largest company holder of Bitcoin.
As of Might 2025, it holds roughly 568,840 BTC, price an estimated $59 billion.
For the reason that firm started accumulating Bitcoin in 2020, its inventory has surged greater than 1,500%, far outperforming the broader market.
Chanos believes that publicity to Bitcoin by way of equities like Technique is an inefficient and overvalued route for traders.
WATCH: Billionaire Jim Chanos says he's lengthy on #Bitcoin $BTC however brief on #MicroStrategy $MSTR, calling it “too leveraged.” pic.twitter.com/NNRSZU2V2N
— Roundtable Community (@RTB_io) Might 15, 2025
He argues that retail traders are paying a premium for oblique Bitcoin publicity by way of public firms, which inflates valuations past rational ranges.
His place contrasts sharply with Technique analysts, together with Jeff Walton, who not too long ago stated in a Monetary Occasions documentary that the agency may turn into “the primary publicly traded fairness in the complete market” as a result of its BTC holdings.
Chanos has lengthy been crucial of Bitcoin and the crypto sector. In 2018, he dismissed Bitcoin as a “libertarian fantasy,” arguing that in a monetary collapse, digital property would have little sensible worth.
“If the world goes down, I’d moderately have meals than Bitcoin,” he as soon as quipped. He additionally criticized the trade for facilitating illicit monetary exercise, calling crypto “the darkish aspect of finance” in a 2023 interview.
Chanos Prefers Direct Bitcoin Possession
Regardless of his previous criticisms, Chanos now sees direct Bitcoin possession as a greater worth than proudly owning crypto-heavy shares.
He additionally not too long ago criticized the rise of spot Bitcoin ETFs, suggesting that Wall Avenue’s curiosity is pushed extra by price technology than by perception within the asset.
Chanos is finest recognized for his legendary in need of Enron earlier than its collapse in 2001, which introduced huge positive aspects to his agency, Kynikos Associates.
Nonetheless, not all his bets have been winners. His notorious in need of Tesla value him closely because the inventory soared over 2,000%, resulting in his fund’s eventual conversion right into a household workplace.
As reported, Jeff Walton, an analyst at Technique, has stated the agency might someday rise to turn into the highest publicly traded firm on the planet.
Walton believes the corporate’s unprecedented publicity to Bitcoin, which not too long ago crossed $104,000, provides it a singular edge.
“Technique holds extra of the very best asset and most pristine collateral on the planet than another firm, by multiples,” he stated.
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