1 month ago
Jim Chanos, the seasoned capitalist who made his sanction shorting Enron, is betting connected bitcoin (BTC) commercialized portion shorting Strategy (MSTR), the largest firm holder of the biggest cryptocurrency.
In an interrogation astatine the Sohn Investment Conference successful New York with CNBC, Chanos elaborate the bet. “We’re selling MicroStrategy banal and buying bitcoin,” Chanos said, calling it an arbitrage move: “Basically buying thing for $1, selling it for $2.50.”
Strategy started acquiring bitcoin successful 2020 and has since morphed into a bitcoin proxy for investors. The steadfast has issued indebtedness and equity to accumulate the cryptocurrency, and present has a 568,840 BTC hoard bought astatine an mean outgo of $69,287 per coin.
The assertive bitcoin accumulation, backed by Wall Street analysts, has made its banal delicate not conscionable to bitcoin’s price, but besides to capitalist appetite for risk. Strategy’s shares are up 3,500% successful the past 5 years to present commercialized astatine $416 a piece, giving it a $115 cardinal marketplace capitalization.
To Chanos, Strategy’s valuation doesn’t marque consciousness arsenic MSTR shares person surged much than the terms of bitcoin.
The money manager argues that this emergence reflects retail speculation much than fundamentals, a taxable helium believes is echoed by different firms present trying to replicate Strategy’s bitcoin accumulation strategy.
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