Jim Chanos, the veteran investor who made his name Shorting Enron, bet on the Bitcoin trade (BTC) while the short-circuit strategy (MSTR), the largest business holder of the largest cryptocurrency.
In an interview with the Sohn Investment conference in New York with CNBC, Chanos detailed the bet. “We sell microstrategy actions and buy bitcoin,” said Chantos, calling him an arbitration decision: “Buy something for $ 1, selling it for $ 2.50.”
The strategy began to acquire Bitcoin in 2020 and has since transformed into a Bitcoin proxy for investors. The cabinet has issued debts and equity to accumulate cryptocurrency, and now has a treasure of 568,840 BTC bought for an average cost of $ 69,287 per room.
The aggressive accumulation of Bitcoin, supported by Wall Street analysts, made its stock sensitive not only to the price of Bitcoin, but also to the appetite of investors for the risk. Strategy shares have increased by 3,500% in the past five years to negotiate $ 416 per room now, which gives it a market capitalization of $ 115 billion.
For Chanos, the evaluation of the strategy does not make sense because MSTR actions have increased more than the price of Bitcoin.
The fund manager argues that this increase reflects more retail speculation than the fundamentals, a theme which, according to him, is reproduced by other companies which now try to reproduce the strategy of bitcoin accumulation of the strategy.
