Jim Chanos is going long on Bitcoin and shorting other assets.

Investor Jim Chanos Shorts MicroStrategy Stock While Buying Bitcoin Directly

Jim Chanos, the famed investor who gained recognition for shorting Enron, is now making a strategic move by shorting MicroStrategy (MSTR) shares and going long on bitcoin (BTC) itself.

Speaking at the Sohn Investment Conference in New York during an interview with CNBC, Chanos described his approach: “We are selling MicroStrategy stock and buying bitcoin. Essentially, it’s an arbitrage — buying bitcoin cheaply and selling the overpriced stock.”

MicroStrategy has been accumulating bitcoin since 2020, acquiring over 568,000 BTC at an average price around $69,000 per coin. The company has financed these purchases through debt and equity issuance, turning its stock into a de facto bitcoin proxy for investors.

While MSTR shares have skyrocketed 3,500% over the past five years, trading near $416 and valuing the company at $115 billion, Chanos contends this surge is disconnected from bitcoin’s actual price performance.

He warns that MicroStrategy’s premium is largely fueled by speculative retail trading rather than fundamental valuation, a pattern he sees repeating with other firms adopting similar bitcoin accumulation strategies.