Algorithmic Ratings & Investment Analysis
©ARIA 2025
by aria-ratings.com
May 15, 2025 at 10:40
Bitcoin Overvalued? Jim Chanos Goes Long on Bitcoin While Shorting MicroStrategy
Famous short trader Jim Chanos has publicly announced his position regarding MicroStrategy and Bitcoin, drawing attention from the financial community.
In an interview with CNBC, Chanos revealed that he has short-sold shares of MicroStrategy, the company known for its bullish stance on Bitcoin, while simultaneously purchasing Bitcoin directly.
His strategy hinges on the disparity in valuation, as he considers MicroStrategy’s $115 billion valuation excessive when compared to Bitcoin’s performance.
Chanos has highlighted that since its stocks surged by 3,500% over the past five years, the current valuation seems unjustifiable.
He argues that promoting Bitcoin through institutional vehicles like MicroStrategy is misguided, and recommends investors seek direct exposure to Bitcoin instead.
Chanos's strategy includes selling MicroStrategy shares at inflated prices while buying Bitcoin as an undervalued asset.
He states, "So we're doing what MicroStrategy and former CEO Michael Saylor did, but in reverse."
While MicroStrategy shares have grown by over 220% in the past year, Bitcoin has appreciated by only 70%, leading Chanos to consider MicroStrategy stocks overpriced.
This move signals a notable shift in the perception of institutional cryptocurrency investments, suggesting that some investors are looking for more direct avenues.
As the debate continues over the best method to invest in Bitcoin, Chanos's approach highlights the need for critical analysis of market valuations in the crypto space.
Cboe has submitted a proposal to the SEC to launch a unique spot exchange-traded fund (ETF) focused on TRON's native cryptocurrency, TRX, incorporating staking rewards. This ETF aims to tap into TRON's $25 bil...
a few seconds ago
Polkadot's price has taken a hit following news of a delay in the anticipated exchange-traded fund (ETF) by 21Shares. The ETF, which was expected to provide investors with easier access to Polkadot's native cr...
30 minutes ago
In a compelling address at Consensus 2025 in Toronto, Lucas Matheson, CEO of Coinbase Canada, urged the new government to implement a national cryptocurrency strategy. Matheson highlighted Canada's rich history...
MoonPay has announced a partnership with Mastercard, launching a crypto card that allows users to spend stablecoins at over 150 million merchants around the globe. This innovative integration enables users of ...
TRON DAO has officially selected Chainlink Data Feeds as its primary oracle solution, marking a pivotal advancement in its DeFi ecosystem. This integration is a key part of TRON's vision for building a decentr...
4 hours ago
Bitcoin (BTC) and other cryptocurrencies have reacted to recent U.S. economic data, particularly the Producer Price Index (PPI), which released lower than expected figures. The Core PPI data showed a decline, ...
4 hours ago
The blockchain-based project MRKT has made waves by launching an NFT marketplace as a mini app on Telegram. This new platform is built on the TON blockchain, which aims to provide a seamless and efficient user...
4 hours ago
In a bold move against cybercrime, Coinbase has announced a $20 million bounty program following an extortion attempt involving stolen user data. The U.S.-based cryptocurrency exchange revealed that hackers ha...
4 hours ago
Mastercard has officially teamed up with MoonPay to launch stablecoin cards, revolutionizing payment options for over 150 million merchants worldwide. This initiative will enable users to transact using stable...
Stay informed and up-to-date on the market's latest news with ARIA's Institutional Terminal's News Aggregator.
Find your curated news articles and analysis from over 50 sources, including the crypto's biggest publications.
Get Institutional Access