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Famous investor and short-positioned Jim Chanos said in his latest statement that he is not against Bitcoin (BTC), but MicroStrategy (MSTR) shares are still trading above their real value.
“I’m agnostic about where Bitcoin’s price will go; I have no idea what its value is, nor do I predict its direction. However, we are holding Bitcoin while shorting MicroStrategy. It was an arbitrage strategy,” Chanos said in an interview.
The renowned investor argued that he found it unreasonable that shares of companies holding Bitcoin treasury were trading at a high premium compared to the value of the Bitcoin they held:
“It’s not rational for investors to see companies holding Bitcoin holdings generate a premium on their shares solely because of this. MicroStrategy is the most well-known example, but we believe investors who want to buy Bitcoin should buy it at $1, not $1.40.”
Chanos also noted that MicroStrategy’s premium to net asset value (NAV) ratio fell from 1.9 to 1.4, while other companies with similar structures fell below 1.0:
“MicroStrategy is still holding at 1.4, but that gap will close over time. Other similar companies have been completely wiped out.”
When asked if he had closed his short positions, Chanos said they had not yet closed any positions, but “we reserve the right to change our minds.”
Finally, Chanos said that as long as MicroStrategy continues to borrow and buy Bitcoin, they will follow the same strategy.
*This is not investment advice.
