Jim Chanos, the legendary Wall Street short seller who gained fame for shorting the energy company Enron, is now targeting Bitcoin concept stocks — Strategy (MSTR), while simultaneously buying Bitcoin.
Recently, Jim Chanos said in an interview with CNBC: "We are selling MicroStrategy (Strategy) stock while buying Bitcoin. This is an arbitrage strategy, simply put, you buy at $1 and sell at a price as high as $2.5."
Is MSTR becoming a shadow stock of Bitcoin, with valuations already 'out of touch with reality'?
Since 2020, Strategy has been aggressively purchasing Bitcoin, issuing bonds, increasing capital, and leveraging to continually increase its holdings, now owning over 560,000 Bitcoins, with an average purchase cost of $69,287 per coin, making it a Bitcoin giant in the corporate world.
In the eyes of the market, Strategy is no longer just a technology company, but has become a 'shadow stock of Bitcoin' — a gateway for investors who want to participate in the cryptocurrency market but cannot hold coins directly.
Also because of the large scale of Bitcoin holdings, the performance of Strategy's stock price is extremely susceptible to fluctuations in coin prices and market risk sentiment. In the past five years, the company's stock price has skyrocketed over 3,500%, with the current stock price at $416 per share and a market capitalization of $115 billion.
However, Jim Chanos is clearly skeptical about the valuation of Strategy. He bluntly stated that the increase in Strategy's stock price has long exceeded that of Bitcoin itself, reflecting not fundamentals but rather a high level of speculation from retail investors.
"Wall Street legend short seller takes action! Jim Chanos 'buys Bitcoin, sells Strategy' for a two-pronged arbitrage" was first published on (Block Geek).
