- Strategy holds 568,840 BTC ($58B), urging firms like Microsoft to adopt similar accumulation tactics.
- Chanos warns corporate BTC strategies risk losses if hype fades, calling MSTR’s stock speculative.
Jim Chanos, the investor renowned for uncovering Enron’s fraud, has announced a dual strategy: shorting MicroStrategy’s stock while taking a long position in Bitcoin. His decision, revealed at the Sohn Investment Conference, highlights skepticism toward companies whose valuations rely heavily on cryptocurrency holdings.
Chanos founded Kynikos Associates, a firm specializing in short-selling. He gained prominence in 2000 by exposing Enron’s deceptive accounting practices, which led to the company’s collapse.
His latest move targets Strategy, a business intelligence firm that has aggressively accumulated Bitcoin. Chanos argues that MicroStrategy’s stock price has disconnected from its operational performance, instead reflecting speculative fervor around its Bitcoin reserves.
Strategy has acquired 13,390 BTC for ~$1.34 billion at ~$99,856 per bitcoin and has achieved BTC Yield of 15.5% YTD 2025. As of 5/11/2025, we hodl 568,840 $BTC acquired for ~$39.41 billion at ~$69,287 per bitcoin. $MSTR $STRK $STRF
— Michael Saylor (@saylor) May 12, 2025
Strategy holds approximately 568,840 BTC, worth over $58 billion, representing 2.7% of Bitcoin’s total supply. The company acquired 122,000 BTC in 2025 alone and has advocated for other corporations, including Microsoft, to adopt similar strategies.
However, Chanos contends that Strategy market value outpaces the underlying worth of its Bitcoin portfolio, creating vulnerability if market sentiment shifts.
Chanos views Bitcoin itself as undervalued compared to MicroStrategy’s stock. He suggests investors bypass the company and acquire Bitcoin directly, avoiding the premium priced into equities tied to crypto holdings. Strategy shares have risen sharply alongside Bitcoin’s price, but Chanos believes this correlation overlooks the firm’s core business challenges.
Risks of Corporate Bitcoin Accumulation
Chanos warns that Strategy’s strategy could inspire other companies to prioritize Bitcoin acquisitions over operational growth. He describes this trend as speculative, driven more by market hype than sound financial planning.
If Bitcoin’s price stagnates or declines, firms relying on such strategies might face amplified losses, as their stock valuations could plummet alongside crypto markets.
Chanos’ stance underscores a broader debate: whether crypto-linked equities offer genuine value or simply mirror cryptocurrency volatility. For investors, his strategy emphasizes caution toward stocks buoyed by Bitcoin’s popularity rather than business fundamentals. Direct exposure to Bitcoin, he argues, provides clearer risk-reward dynamics without the baggage of corporate debt or operational inefficiencies.
Strategy (MSTR) – Price & Technical Analysis – May 13, 2025
Strategy (MSTR) is currently trading at $397.03, down -4.73% on the day, after a broader pullback in Bitcoin price and related equities. Despite today’s weakness, MSTR remains up +27.16% over the past month and +32.29% year-to-date, while posting a staggering +187.79% gain over the past year, tightly tracking Bitcoin’s broader macro uptrend. In post-market trading, MSTR is slightly rebounding to $398.51 (+0.37%), indicating buyers may be stepping in at support.
From a technical view, MSTR is consolidating between $395–$425, with key support at $380 and overhead resistance around $437. Today’s selloff reflects short-term profit-taking as BTC hovers around $103K–$104K.
Historically, MSTR has shown a high beta correlation to Bitcoin, meaning price movements in BTC tend to amplify in MSTR stock due to its leveraged exposure via treasury holdings.
Fundamentally, Strategy holds over 568,000 BTC, with recent reports estimating an unrealized profit of $20 billion on its Bitcoin position. The company has become a de facto proxy for Bitcoin exposure, particularly for institutional investors unable to access crypto directly. With earnings expected on August 5, 2025, traders will closely watch for updates on BTC purchases and capital strategy.
