Investor Jim Chanos Shorting MicroStrategy Stock While Going Long on Bitcoin
Investor Jim Chanos announced a short position on MicroStrategy (MSTR) stock, citing a 177% gain over the past year and a 40% rise since the start of 2025. He simultaneously is going long on Bitcoin, stating:
“We’re selling MicroStrategy stock and buying Bitcoin and basically buying something for $1 selling it for two and a half dollars.”
Key Points on MSTR and Bitcoin Investments
- MSTR stock has been a proxy for Bitcoin investments, particularly for institutional players.
- The stock trades at a premium compared to its actual Bitcoin holdings due to aggressive acquisitions.
- Chanos warned about the leverage used by MicroStrategy and similar firms to acquire Bitcoin.
- Many companies have begun following MicroStrategy's example, but some face declining stock prices due to poor financial performance.
Increase in Long Bitcoin Bets
- Long-term holder (LTH) realized price for Bitcoin has risen to $45,340.
- This increase reflects the aging of coins purchased at higher price levels of around $90,000–$100,000.
- Buyers from December 2024 are now classified as LTHs, raising their cost basis gradually.