Famed Wall Street contrarian Jim Chanos says Michael Saylor’s latest Bitcoin (BTC) purchase suggests a lack of demand for Strategy stock (MSTR).
Chanos, founder of Kynikos Associates, has been vocally bearish on Strategy with the thesis that Bitcoin treasury companies are not worth a premium for their BTC holdings.
Strategy, formerly MicroStrategy, is the largest corporate holder of Bitcoin in the world with a treasury of 629,376 BTC worth $73.01 billion. MSTR, however, has a market cap of approximately $104 billion, resulting in a Net Asset Value (NAV) of $1.420.
The firm has been known to place massive, multi-billion-dollar purchases for BTC, usually by issuing MSTR shares. But on Monday, it added only $51 million worth of Bitcoin.
Chanos, who is short MSTR, says in a post on X that the small purchase is due to dwindling demand for the stock, potentially conflicting with the company’s equity guidance.
“So not only did MSTR buy just $51M of Bitcoin, due to lack of demand for the preferred ATM’s (at the market offerings), but it also looks like Saylor is lowering the 2.5x mNAV floor ‘when otherwise deemed advantageous’ to the Company.”
Notably, Strategy has made many small purchases which ended up preceding rallies in both MSTR and BTC.
At time of writing, MSTR is trading at $367, down nearly 33% from its all-time high of $548.
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