Strategy’s Premium Branded ‘Financial Gibberish’ by Short-Seller Jim Chanos

Jim Chanos Shorts Strategy, Calls Out ‘Financial Gibberish’ in Premium Valuation

Famed short-seller Jim Chanos is betting against Strategy (MSTR), arguing that the company’s valuation is wildly disconnected from reality—even as he remains bullish on bitcoin itself.

Chanos, known for calling out Enron before its collapse, revealed a short position in Strategy while maintaining a long position in bitcoin. His core argument: Strategy trades at nearly double the value of its underlying bitcoin holdings, and that premium isn’t justified. He’s playing the spread—shorting the stock, long BTC—anticipating the gap will collapse.

Speaking on the We Study Billionaires podcast, Chanos didn’t hold back, calling Strategy Executive Chairman Michael Saylor’s funding tactics—such as issuing convertible notes and preferred shares to buy more BTC—“financial gibberish.” He warned these maneuvers expose equity holders to unnecessary risk without offering real upside beyond bitcoin itself.

Chanos faced off with Bitcoin Bond Co. CEO Pierre Rochard, who defended the 1.9x premium, arguing it reflects Strategy’s early-mover advantage, name recognition, and unique appeal for investors wanting indirect exposure to bitcoin without managing custody.

Rochard also highlighted regulatory tailwinds and Strategy’s ability to raise capital non-dilutively as bullish factors. “It’s a leveraged bitcoin play with operational scale,” he said.

But Chanos remained firm: Strategy’s edge is eroding fast as over 140 companies—like Marathon, Riot, and Metaplanet—follow similar BTC accumulation strategies. In his view, Strategy’s premium is built more on hype than substance, and holding bitcoin directly is the more rational bet.

As institutional interest in bitcoin rises, Chanos sees an opportunity to profit from the unwinding of what he views as an unsustainable equity bubble wrapped in a bitcoin narrative.