Crypto Critics Roar: Legendary Short-Seller Chanos Dismisses Bitcoin Treasuries as ‘Financial Nonsense’
Wall Street’s most notorious bear takes aim at Bitcoin—again. Jim Chanos, the short-seller who called Enron’s collapse, just slammed corporate Bitcoin holdings as ‘accounting theater.’ Here’s why he’s wrong—and why crypto keeps winning.
The Chanos Playbook: Same Script, New Villain
Chanos—a man who made billions betting against failing companies—now trains his sights on MicroStrategy and other Bitcoin-heavy balance sheets. His argument? Volatile crypto assets distort financial reality. Tell that to the Fortune 500 firms quietly stacking SATs.
Numbers Don’t Lie (But Short-Sellers Might)
While Chanos mocks ‘magic internet money’ accounting, Bitcoin’s up 120% year-to-date—outpacing his beloved S&P by 5x. Funny how legacy finance never complains when *their* balance sheets get creative with goodwill write-downs.
The Bottom Line
Crypto doesn’t need approval from Wall Street’s old guard. The market’s voting with its wallet—and the tally’s looking bullish. As for Chanos? Maybe he’s just bitter that shorting Bitcoin’s been a one-way ticket to margin calls since 2020.
Chanos Dismisses Saylor’s ‘Risk-Free’ Bitcoin Treasury Pitch
Saylor has defended Strategy’s valuation, arguing that the company’s ability to raise capital at a premium effectively renders its strategy “risk-free.” Chanos, however, rejected that logic outright.
“There’s a wonderful sales job that’s being done about the fact that this is an economic engine in and of itself,” he said.
“And so therefore, terms like ‘Bitcoin yield’ are used and I’ve called them financial gibberish because they are.”
His pointed comments continue a long-running feud with Saylor over Strategy’s true value, which Chanos argues is wildly disconnected from the worth of its Bitcoin holdings.
He warned that investors are being misled by flashy narratives into believing these companies generate meaningful economic activity simply by accumulating digital assets.
Famed short seller, Jim Chanos is going long BTC, shorting MSTR. At Sohn Conference, he said: “We’re buying Bitcoin, selling MicroStrategy stock—an arbitrage play, buying for $1, selling for $2.50.” Betting against MSTR’s premium. pic.twitter.com/PdN0mg5w9T
Alongside his critique of Bitcoin treasuries, Chanos turned his attention to the red-hot artificial intelligence sector, cautioning that the AI boom could face a sharp correction.
He drew parallels to the late-1990s frenzy surrounding networking giants like Cisco and Lucent, which rode the early internet wave to towering valuations before seeing orders collapse during the TMT bust.
“There is an ecosystem around the AI boom that is considerable, as there was for TMT back in ‘99 and 2000,” Chanos said.
“But it is a riskier revenue stream because if people pull back, they can pull back CapEx very easily.”
He explained that corporate spending on data centers and semiconductors could quickly dry up if macroeconomic headwinds, like a cooling labor market or rising tariffs, force companies to pause investments.
While Chanos acknowledged the AI sector has yet to hit a tipping point, he warned that many investors may be underestimating the risk of a sudden reversal in corporate demand.
VanEck Raises Concerns Over Corporate Bitcoin Strategies
Matthew Sigel, head of digital asset research at VanEck, has also voiced concerns over the Bitcoin treasury strategies adopted by some publicly traded firms, warning that aggressive BTC accumulation could ultimately hurt shareholders.
Sigel singled out the use of at-the-market (ATM) share issuance programs, arguing that these can become dilutive if a company’s stock price nears its Bitcoin net asset value (NAV).
As reported, over the past week, at least nine UK firms, from web design startups to mining businesses, have announced plans to buy Bitcoin or revealed recent purchases to add the cryptocurrency to their corporate treasuries.
Among the UK firms, AI services provider TAO Alpha disclosed plans to raise £100 million after revealing a bitcoin treasury plan that triggered investor interest.
Smarter Web Company, a small website design firm, saw its market value rocket from £4 million to over £1 billion in just two months after announcing its Bitcoin purchases in April, although shares have since cooled.
