Jim Chanos Bets on Bitcoin While Shorting MicroStrategy Stock

Jim Chanos is executing a long and short trade strategy involving MicroStrategy and bitcoin. He plans to sell MicroStrategy stock while buying bitcoin, viewing it as an arbitrage opportunity.

MicroStrategy started acquiring bitcoin in 2020 and holds 568,840 BTC, purchased at an average cost of $69,287 per coin.
The company's shares have increased 3,500% over the last five years, currently trading at $416, with a market capitalization of $115 billion.
Chanos contends that MicroStrategy's current valuation is unsustainable, as its stock price has risen more than bitcoin's price.
He attributes this increase to retail speculation rather than fundamentals, noting other firms are trying to mimic MicroStrategy’s accumulation strategy.