Jim Chanos, the veteran investor who made his name in short circuit Enron, is betting on Bitcoin’s trade (BTC) while Shorting Strategy (Mstr), the largest corporate head of the largest cryptocurrency.
In an interview at the Sohn investment conference in New York with CNBC, Chanos detailed the bet. “We are selling Microstrategy actions and buying Bitcoin,” said Chanos, calling him an arbitration movement: “Basically buying something for $ 1, selling it for $ 2.50”.
The strategy began to acquire Bitcoin in 2020 and since then it has become a Bitcoin proxy for investors. The firm has issued debt and capital to accumulate cryptocurrency, and now has a treasure of 568,840 BTC purchased at an average cost of $ 69,287 per currency.
The aggressive accumulation of Bitcoin, backed by Wall Street analysts, has made its shares sensitive not only at the price of Bitcoin, but also to the appetite of investors for risk. The actions of the strategy increase from 3,500% in the last five years when operating at $ 416 per piece, which gives a market capitalization of $ 115 billion.
For Chanos, the assessment of the strategy makes no sense since Mstr’s shares have increased more than the price of Bitcoin.
The Fund Administrator argues that this increase reflects retail speculation rather than the foundations, a topic that believes that echos other companies that now try to replicate the strategy accumulation strategy of the strategy.
