Investor Jim Chanos Goes Long on Bitcoin, Shorts MicroStrategy – Here’s Why

Veteran short-seller Jim Chanos, the man who famously exposed the Enron scandal, is now turning heads in the crypto market.

Speaking at the Sohn Investment Conference, Chanos revealed a bold strategy: shorting MicroStrategy while going long on Bitcoin. In simple terms, he’s betting against the company that holds the most Bitcoin on its balance sheet, even as he supports the asset itself.

Here’s why that matters – and what it could mean for the broader crypto market.

Who is Jim Chanos?

Jim Chanos, a Greek-American investor and founder of Kynikos Associates, is widely considered one of the most successful short-sellers in modern financial history.

Back in 2000, Chanos uncovered Enron’s accounting fraud by exposing its deceptive “gain-on-sale” tactics and hidden debt. He shorted the stock before it collapsed, earning massive profits and cementing his reputation.

Known for his detailed analysis and sharp eye for overhyped stocks, Chanos is now turning that same attention toward crypto – and people are listening.

Bitcoin Has Value, But Strategy Stock Doesn’t, Says Chanos

At the Sohn event, Chanos made his position clear: he believes Bitcoin is undervalued, but MicroStrategy, now Strategy, stock is not.

According to him, MicroStrategy’s share price has surged well beyond the actual value of its Bitcoin holdings. Instead of buying MicroStrategy stock, he argues it’s smarter to buy Bitcoin directly.

His reasoning? MicroStrategy’s stock is being driven by retail speculation, while Bitcoin, in his view, still holds long-term value based on fundamentals.

Inside MicroStrategy’s Massive Bitcoin Holdings

MicroStrategy has become the largest publicly traded holder of Bitcoin. As of now, the company owns:

• Over 568,840 BTC in its reserves
  
• Holdings valued at more than $58 billion
  
• Ownership of roughly 2.7% of Bitcoin’s total supply

In 2025 alone, MicroStrategy added more than 122,000 BTC to its reserves. The company has even inspired other major firms, including Microsoft, to consider a similar Bitcoin accumulation strategy.

But Chanos isn’t convinced. He warns that MicroStrategy’s stock price has grown too fast compared to the growth in Bitcoin’s price, raising concerns that the stock may be overbought.

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Warning: The Bitcoin Corporate Strategy Could Backfire

Chanos cautioned that other companies might try to follow MicroStrategy’s lead and start buying up Bitcoin in large quantities. But he believes this trend is more about hype than sound business logic.

Once the excitement fades, these companies could face major financial losses. In his view, MicroStrategy’s valuation doesn’t reflect a strong core business – it reflects inflated expectations from investors.

Betting on Bitcoin, Not the Hype

It’s important to note that Chanos isn’t anti-Bitcoin. He believes in its long-term value. What he’s skeptical of is the hype driving stocks like MicroStrategy.

By shorting MicroStrategy and going long on Bitcoin, Chanos is sending a message: trust the asset, not the noise around it.

With crypto-related equities becoming increasingly speculative, his approach is a reminder to investors to look past the buzz and focus on real value.

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