Famous short investor Jim Chanos announced that he sold shares of Bitcoin bull Michael Saylor’s company MicroStaretgy and bought Bitcoin by applying an arbitrage strategy.
Speaking to CNBC, Jim Chanos said that he implemented an arbitrage strategy by short-selling MicroStrategy (MSTR), citing the stock’s extreme bullishness compared to BTC’s performance.
Veteran investor Chanos cited MSTR’s $115 billion valuation, noting that the company’s shares have risen 3,500% over the past five years.
Chanos said it was illogical and ridiculous for MicroStrategy and companies that followed in its footsteps to introduce retail investors to the idea of buying Bitcoin through an institutional structure.
According to Chanos, investors should opt for direct exposure to Bitcoin rather than leveraged institutional brokers like MicroStrategy.
“We are selling MicroStrategy stock and buying Bitcoin.
So we’re doing what MicroStrategy and former CEO Michael Saylor did,
So we’re selling MicroStrategy stock and buying Bitcoin, and we’re basically buying something for $1 and selling it for $2.5.”
Finally, the experienced investor points out that MicroStrategy shares have risen by more than 220% in the last year, while Bitcoin has gained approximately 70% in value during the same period, and he thinks that MicroStrategy shares are overvalued compared to Bitcoin.
*This is not investment advice.
Continue Reading: Wall Street’s Famous Short Trader Announces He’s Short on MicroStrategy and Long on Bitcoin! Here’s Why!
