Long Bitcoin, Short MicroStrategy (MSTR)
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Key Notes MicroStrategy has long been a proxy for institutional Bitcoin exposure, but Chanos criticized its valuation. He said that the firm leverages retail enthusiasm for Bitcoin into a corporate premium, labeling this model as “ridiculous”. Bitcoin’s Long-Term Holder realized price rose to $45,340, reflecting the transition of December 2024 buyers into long-term status. With 177% gains over the past year and 40% since the start of 2025, investor Jim Chanos believes that this is the right time to short Strategy (MSTR) stock. Previously dubbed MicroStrategy, the MSTR stock has enjoyed a premium over Bitcoin BTC $96 611 24h volatility: 2.1% Market cap: $1.92 T Vol. 24h: $29.09 B gains for a long time, amid its aggressive Bitcoin acquisition strategy. While speaking on the sidelines of the Sohn Investment Conference in New York, investor Jim Chanos revealed his short position on MSTR. However, he disclosed that he’s simultaneously going long on Bitcoin. In an interview with CNBC, Chanos said: “We’re selling MicroStrategy stock and buying Bitcoin and basically buying something for $1 selling it for two and a half dollars.” Strategy’s Big Bitcoin Bet and MSTR Stock Surge For years, Strategy’s MSTR stock has been a big proxy bet on Bitcoin, especially for institutional players who did not have access to the asset. With its aggressive Bitcoin purchases, the company has still managed to maintain that additional alpha on Bitcoin returns. However, MicroStrategy has used leverage to build its Bitcoin reserves and currently trades at a significant premium relative to the value of its Bitcoin holdings. Warning about it, investor Chanos said: “If you look at where MicroStrategy and now, more ominously, some of its copycat companies that are now raising lots of money are doing, they are basically selling retail investors the idea that we are going to buy…
