Investor Takes Short Position on Strategy Shares and Long on Bitcoin

Jim Chanos, an investor specializing in short positions and founder of Kynikos Associates, revealed in an interview with CNBC that he has purchased bitcoin and opened short positions on Strategy shares.

“We are essentially buying something for $1 and selling it for $2.5. […] It’s a good barometer not only of the arbitrage itself but also of retail speculation,” the expert explained the strategy.

The publication noted that the organization used leverage, and its shares trade at a significant premium relative to the coins held on its balance sheet.

“If you look at what Strategy and its imitators are doing, they are selling retail investors the idea that we are going to acquire digital gold for the corporate structure,” Chanos explained.

The expert described this approach as “ridiculous.” He pointed out that he is doing the same thing as Strategy, buying for $1 what is worth $1.

Over the past year, Strategy shares have soared by more than 220%, while the leading cryptocurrency has appreciated by nearly 70% over a similar period, CNBC reported.

According to Bernstein experts, the bitcoin strategy is applicable not to every project. The most suitable candidates are companies with low growth rates and high levels of cash.

Analysts predict that by 2029, corporations will increase the volume of digital gold on their balance sheets to $330 billion, with Strategy remaining the leader in acquisitions.

Earlier, the corporation’s founder, Michael Saylor, predicted that its capitalization would grow to $10 trillion.