Gate news, legendary short seller Jim Chanos has recently gone all out, targeting listed companies led by Strategy (formerly MicroStrategy) that adopt aggressive Bitcoin strategies. In a live interview on the Odd Lots podcast, Chanos harshly criticized the business model promoted by MicroStrategy, led by Michael Saylor, calling its core practices "financial gibberish."
MicroStrategy: Valuation Bubble and the Myth of "Risk-Free" Disproved
Chanos pointed out that MicroStrategy's current market value has exceeded 100 billion USD, which is almost twice the value of the approximately 60 billion USD worth of Bitcoin it holds on its balance sheet. He believes this enormous valuation premium is completely detached from the value basis of its core asset (Bitcoin).
In response to Michael Saylor's defense of his company's high valuation—that the company can finance at a premium, making its Bitcoin accumulation strategy seem "risk-free"—Chanos categorically refuted this. He pointedly stated: "MicroStrategy itself is an economic engine, and this is being well promoted. It is precisely for this reason that terms like 'Bitcoin yields' are used, and I call them financial nonsense, because they are just that."
This statement continues the long-standing debate between Chanos and Saylor about the true value of MicroStrategy. Chanos's core argument is that: the true value of MicroStrategy has a huge gap compared to the value of the Bitcoin it holds. He warns investors not to be fooled by glamorous narratives into thinking that these companies can create substantial and meaningful economic activity merely by hoarding digital assets.
AI Hype Warning: Could Repeat the Internet Bubble of the Millennium
In addition to focusing on the Bitcoin sector, Chanos has also turned his attention to the currently hot artificial intelligence (AI) field, issuing a strong warning that the current AI investment frenzy may face significant correction risks.
He compares the current AI boom to the frenzy of network giants like Cisco and Lucent during the late 1990s internet bubble. These companies saw their valuations soar in the early days of the internet wave, but after the collapse of the technology, media, and telecommunications (TMT) bubble, their order volumes plummeted.
"Around the artificial intelligence boom, there exists a quite considerable ecosystem, just like the TMT industry in 1999 and 2000," said Chanos, "but the risk of revenue sources is higher, because if people withdraw their investment, they can easily cut back on capital expenditures."
Chanos explained that if the macroeconomic environment deteriorates, such as a cooling labor market or an increase in tariffs, companies' spending on AI infrastructure like data centers and semiconductors could quickly dry up. While he acknowledged that the AI industry has not yet reached the peak of a bubble, he emphasized that many investors may underestimate the possibility of a sudden and sharp reversal in corporate demand.
VanEck Joins the Warning Camp: Public Company Bitcoin Strategy May Harm Shareholder Interests
Concerns about the Bitcoin strategies of listed companies are not unique to Chanos. Matthew Sigel, the head of digital asset research at asset management giant VanEck, has also expressed similar worries. Sigel warned that the aggressive Bitcoin accumulation strategies adopted by some listed companies could ultimately harm shareholder interests.
He specifically mentioned the practice of raising funds to purchase Bitcoin through "at-the-market (ATM)" stock offerings. Sigel believes that if the company's stock price approaches the net asset value (NAV) of its held Bitcoin, such financing plans could significantly dilute the equity of existing shareholders.
UK Companies Jump on the Bandwagon: Small Companies' Market Value Soars, Attracting Attention
Reports indicate that in the past week, at least 9 companies in the UK—from web design startups to mining firms—have announced plans to purchase Bitcoin or revealed that they have recently acquired Bitcoin, incorporating it into their corporate funds management strategy.
Among them, the artificial intelligence service provider Tao Alpha disclosed a Bitcoin fund management plan that has attracted investors' interest, and announced plans to raise £100 million to support the strategy.
Even more striking is the small web design company Smarter Web Company. Since the company announced its purchase of Bitcoin in April, its market value has skyrocketed from around £4 million to an astonishing over £1 billion in just two months (although the stock price has recently retraced). This case vividly illustrates the market's fervent pursuit of the concept of "involving Bitcoin," while also highlighting the valuation bubble risks that Chanos has warned about.
Conclusion:
As an experienced market observer, Jim Chanos' stern criticism has sounded the alarm for the current fervor surrounding Bitcoin companies and the AI investment wave. Strategy, as a benchmark for the Bitcoin "corporate bond" model, is facing severe challenges to its high valuation logic. At the same time, the capital feast in the AI field also needs to be wary of the risk of history repeating itself. Investors, while chasing hot trends, must carefully identify fundamentals and be cautious of "financial nonsense" and potential bubbles. As more institutions (like VanEck) join the ranks of risk warnings, and the emergence of small companies following suit in places like the UK, the controversy and scrutiny surrounding listed companies' Bitcoin strategies will surely continue to intensify.
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Legendary short seller Chanos blasts Strategy: Bitcoin strategy is "financial nonsense," and there are also bubble concerns in the AI craze.
Gate news, legendary short seller Jim Chanos has recently gone all out, targeting listed companies led by Strategy (formerly MicroStrategy) that adopt aggressive Bitcoin strategies. In a live interview on the Odd Lots podcast, Chanos harshly criticized the business model promoted by MicroStrategy, led by Michael Saylor, calling its core practices "financial gibberish."
MicroStrategy: Valuation Bubble and the Myth of "Risk-Free" Disproved
Chanos pointed out that MicroStrategy's current market value has exceeded 100 billion USD, which is almost twice the value of the approximately 60 billion USD worth of Bitcoin it holds on its balance sheet. He believes this enormous valuation premium is completely detached from the value basis of its core asset (Bitcoin).
In response to Michael Saylor's defense of his company's high valuation—that the company can finance at a premium, making its Bitcoin accumulation strategy seem "risk-free"—Chanos categorically refuted this. He pointedly stated: "MicroStrategy itself is an economic engine, and this is being well promoted. It is precisely for this reason that terms like 'Bitcoin yields' are used, and I call them financial nonsense, because they are just that."
This statement continues the long-standing debate between Chanos and Saylor about the true value of MicroStrategy. Chanos's core argument is that: the true value of MicroStrategy has a huge gap compared to the value of the Bitcoin it holds. He warns investors not to be fooled by glamorous narratives into thinking that these companies can create substantial and meaningful economic activity merely by hoarding digital assets.
AI Hype Warning: Could Repeat the Internet Bubble of the Millennium
In addition to focusing on the Bitcoin sector, Chanos has also turned his attention to the currently hot artificial intelligence (AI) field, issuing a strong warning that the current AI investment frenzy may face significant correction risks.
He compares the current AI boom to the frenzy of network giants like Cisco and Lucent during the late 1990s internet bubble. These companies saw their valuations soar in the early days of the internet wave, but after the collapse of the technology, media, and telecommunications (TMT) bubble, their order volumes plummeted.
"Around the artificial intelligence boom, there exists a quite considerable ecosystem, just like the TMT industry in 1999 and 2000," said Chanos, "but the risk of revenue sources is higher, because if people withdraw their investment, they can easily cut back on capital expenditures."
Chanos explained that if the macroeconomic environment deteriorates, such as a cooling labor market or an increase in tariffs, companies' spending on AI infrastructure like data centers and semiconductors could quickly dry up. While he acknowledged that the AI industry has not yet reached the peak of a bubble, he emphasized that many investors may underestimate the possibility of a sudden and sharp reversal in corporate demand.
VanEck Joins the Warning Camp: Public Company Bitcoin Strategy May Harm Shareholder Interests
Concerns about the Bitcoin strategies of listed companies are not unique to Chanos. Matthew Sigel, the head of digital asset research at asset management giant VanEck, has also expressed similar worries. Sigel warned that the aggressive Bitcoin accumulation strategies adopted by some listed companies could ultimately harm shareholder interests.
He specifically mentioned the practice of raising funds to purchase Bitcoin through "at-the-market (ATM)" stock offerings. Sigel believes that if the company's stock price approaches the net asset value (NAV) of its held Bitcoin, such financing plans could significantly dilute the equity of existing shareholders.
UK Companies Jump on the Bandwagon: Small Companies' Market Value Soars, Attracting Attention
Reports indicate that in the past week, at least 9 companies in the UK—from web design startups to mining firms—have announced plans to purchase Bitcoin or revealed that they have recently acquired Bitcoin, incorporating it into their corporate funds management strategy.
Among them, the artificial intelligence service provider Tao Alpha disclosed a Bitcoin fund management plan that has attracted investors' interest, and announced plans to raise £100 million to support the strategy.
Even more striking is the small web design company Smarter Web Company. Since the company announced its purchase of Bitcoin in April, its market value has skyrocketed from around £4 million to an astonishing over £1 billion in just two months (although the stock price has recently retraced). This case vividly illustrates the market's fervent pursuit of the concept of "involving Bitcoin," while also highlighting the valuation bubble risks that Chanos has warned about.
Conclusion:
As an experienced market observer, Jim Chanos' stern criticism has sounded the alarm for the current fervor surrounding Bitcoin companies and the AI investment wave. Strategy, as a benchmark for the Bitcoin "corporate bond" model, is facing severe challenges to its high valuation logic. At the same time, the capital feast in the AI field also needs to be wary of the risk of history repeating itself. Investors, while chasing hot trends, must carefully identify fundamentals and be cautious of "financial nonsense" and potential bubbles. As more institutions (like VanEck) join the ranks of risk warnings, and the emergence of small companies following suit in places like the UK, the controversy and scrutiny surrounding listed companies' Bitcoin strategies will surely continue to intensify.
Source: Cryptonews