Renowned short-seller Jim Chanos has targeted the burgeoning trend of Bitcoin treasury companies that focus exclusively on amassing the cryptocurrency as a primary financial strategy.
Key Highlights:
Chanos has criticized Bitcoin treasury firms, particularly calling out Michael Saylor’s strategy.
He expressed concerns that investors are being misled into believing that simply stockpiling Bitcoin creates genuine economic value.
Additionally, Chanos warned that the rapid growth of the AI sector might be susceptible to a significant downturn.
During a recent appearance on the Odd Lots podcast, Chanos dismissed the business model championed by Saylor, labeling it “financial gibberish.” He highlighted that Saylor’s firm, Strategy, now boasts a market capitalization exceeding $100 billion, which is nearly double the estimated $60 billion in Bitcoin it has stored in its accounts.
Chanos Challenges Saylor’s ‘Risk-Free’ Bitcoin Proposition
In response to Chanos’ criticism, Saylor has defended the valuation of Strategy, claiming that the company’s ability to secure capital at elevated prices effectively renders its approach “risk-free.” However, Chanos firmly rejected this rationale.
“There’s an impressive sales pitch being made, suggesting that this is an economic engine in and of itself,” Chanos argued. “Terms like ‘Bitcoin yield’ are being employed, and I simply refer to them as financial gibberish.”
Chanos’ sharp remarks are a continuation of his ongoing dispute with Saylor concerning the authentic value of Strategy, which Chanos contends is vastly disconnected from the actual worth of its Bitcoin assets.
He cautioned that these lavish claims could mislead investors into thinking that these companies create significant economic activity merely by accumulating digital currencies.
Famed short seller, Jim Chanos is going long BTC, shorting MSTR. At Sohn Conference, he said: “We’re buying Bitcoin, selling MicroStrategy stock—an arbitrage play, buying for $1, selling for $2.50.” Betting against MSTR’s premium. pic.twitter.com/PdN0mg5w9T
— Coin Bureau (@coinbureau) May 15, 2025
Turning to the fast-evolving artificial intelligence landscape, Chanos expressed concerns that the AI boom might be due for a jarring correction. He compared the current excitement around AI to the late 1990s enthusiasm for networking companies such as Cisco and Lucent, which saw their stocks plummet when technology and media companies faltered.
“There is a substantial ecosystem surrounding the AI boom, similar to what existed in the TMT sector back in ‘99 and 2000,” Chanos noted. “However, it also comes with a riskier revenue model; if companies pull back, they can easily retract capital expenditures.”
He emphasized the potential for corporate investment in data centers and semiconductors to quickly diminish if macroeconomic challenges arise, such as a slowing job market or increasing tariffs, causing firms to pause their spending.
Although Chanos conceded that the AI industry has not yet reached a tipping point, he warned that many investors could be underestimating the threat of a sudden withdrawal in corporate interest.
VanEck Raises Alarm About Corporate Bitcoin Strategies
Matthew Sigel, head of digital asset research at VanEck, has echoed Chanos’ concerns regarding Bitcoin treasury strategies among publicly traded companies, asserting that aggressive Bitcoin accumulation could ultimately disadvantage shareholders.
Sigel highlighted the potential hazards of using at-the-market (ATM) share issuance programs, noting that these could dilute shares if a company’s stock price nears its Bitcoin net asset value (NAV).
In recent developments, at least nine companies in the UK, spanning web design startups to mining enterprises, have announced plans to acquire Bitcoin or have recently added the cryptocurrency to their corporate treasuries.
Among these firms, AI services provider Tao Alpha has revealed intentions to raise £100 million following a Bitcoin treasury announcement that captured investor interest. Meanwhile, Smarter Web Company, a small website design firm, experienced its market valuation soar from £4 million to over £1 billion within a two-month period after unveiling its Bitcoin purchases in April, although shares have since stabilized.
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