Veteran Critic Jim Chanos Rips Into Strategy’s Premium, Calling It ‘Absurd’

Jim Chanos Slams Strategy’s Valuation Premium as “Financial Gibberish”

Famed short-seller Jim Chanos has revealed a bearish position on Strategy (MSTR), arguing that the firm’s stock is trading at an unjustified premium to its underlying bitcoin holdings. While remaining bullish on bitcoin itself, Chanos is betting against Strategy’s equity due to what he calls flawed financial logic.

Speaking on the We Study Billionaires podcast, Chanos noted that Strategy’s shares are currently valued at nearly 1.9 times the worth of the bitcoin it holds. To capitalize on this disparity, he has structured a trade that’s short MSTR while staying long BTC, calling the company’s premium “absurd.”

Chanos criticized Strategy’s financing model, which involves raising capital through convertible debt and preferred equity to buy more bitcoin. “It’s financial gibberish,” he said, arguing that such moves dilute shareholders without adding proportional value.

Defending the company, Bitcoin Bond Co. CEO Pierre Rochard cited Strategy’s first-mover advantage, strong brand recognition, and access to public markets as reasons investors are willing to pay a premium. He added that many institutions prefer exposure via public equity rather than holding bitcoin directly.

Rochard also emphasized Strategy’s capital-raising efficiency, suggesting the firm offers institutional investors a compliant and liquid vehicle for BTC exposure.

Still, Chanos believes Strategy’s competitive edge is eroding. He pointed out that over 140 public companies—including Marathon Digital, Riot Platforms, and Metaplanet—are now following similar bitcoin-focused treasury strategies, which could weaken Strategy’s unique position over time.

According to Chanos, as the market matures and comparable firms emerge, Strategy’s elevated valuation may not hold. “Eventually, the spread will close,” he said, referring to the gap between Strategy’s market cap and the value of its bitcoin holdings.