Wall Street's Big Short: Shorting MicroStrategy and Buying Bitcoin

ChainCatcher news, according to CNBC, Wall Street's renowned short-seller Jim Chanos is betting against Bitcoin while shorting MicroStrategy. He pointed out that the latter has adopted a high-leverage strategy to buy coins, driven by retail enthusiasm, with its stock price far exceeding its actual value.

Chanos stated, "We buy Bitcoin at $1, which is equivalent to selling MicroStrategy at $2.5." He criticized the increasing number of companies following MicroStrategy's lead, selling the logic that holding coins equals high valuation to retail investors, calling this practice absurd.

In the past year, MicroStrategy's stock price has soared over 220%, while Bitcoin has only risen about 70%. Chanos believes that such trades reflect market arbitrage opportunities and the rising speculative sentiment among retail investors.