Archive · 21 Jun 2025
Asness Sides With Chanos Criticizing Saylor’s Bitcoin Strategy
Imagine a company, formerly MicroStrategy, that uses borrowed money to buy Bitcoin.
Its boss, Michael Saylor, thinks if Bitcoin's price drops, they can pay back the loan with their company's stock.
But, financial experts like Jim Chanos and Cliff Asness disagree.
They think this plan isn't safe.
Chanos believes Saylor's way of valuing the company is confusing.
He suggests a way to bet against the company's stock while betting on Bitcoin.
This debate highlights different opinions on how to value and handle investments in Bitcoin.
AQR's Cliff Asness agreed with Jim Chanos' critique of Michael Saylor's strategy.
Chanos and Asness disagree with Saylor's claim that convertible debt protects against Bitcoin price drops.
Saylor believes convertible debt can be paid off with stock if Bitcoin's price falls.
Chanos called Saylor's valuation model 'financial gibberish'.
Chanos recommended an arbitrage trade to short MicroStrategy shares and buy Bitcoin.
- Who
- Cliff Asness, Jim Chanos, and Michael Saylor.
- What
- Cliff Asness and Jim Chanos critique Michael Saylor's Bitcoin strategy.
- When
- The critique was made in a recent week.
- Where
- Wall Street
- Why
- To debate the validity of Saylor's strategy involving convertible debt for Bitcoin purchases.
Michael Saylor's View
Chanos/Asness View
Debt Protection
Michael Saylor's View
Convertible debt provides downside protection.
Chanos/Asness View
Convertible debt may not protect against Bitcoin price drops.
Valuation of Strategy
Michael Saylor's View
Strategy valuation is sound.
Chanos/Asness View
Strategy valuation is not sound.
- Key Figures
- Cliff Asness, Jim Chanos, Michael Saylor
- Company Formerly Known As
- MicroStrategy Inc.
- Focus
- Bitcoin investment strategy
- Debt Type
- Convertible bonds
- Chanos's Criticism
- Financial gibberish
- Stock Performance
- Up 27% YTD