Jim Chanos Slams Michael Saylor’s Bitcoin Valuation Model as “Financial Gibberish”

Renowned short seller Jim Chanos has publicly criticized Michael Saylor, founder of Strategy (MSTR), for what he called “complete financial gibberish” in valuing the company. Chanos took issue with Saylor’s approach of assigning a valuation multiple not only to Strategy’s net asset value (NAV) in Bitcoin but also to the change in that NAV over time—a method Chanos calls absurd.

Saylor’s company, Strategy, is the largest publicly traded corporate holder of Bitcoin and has aggressively accumulated BTC as part of its treasury strategy. Recently, the company added another $110 million in Bitcoin to its holdings, continuing its trend of crypto-heavy financial management.

In a social media post, Chanos argued that Strategy’s valuation framework misleads investors. He proposed an unconventional trade idea: going long on Bitcoin while shorting Strategy stock—betting that the asset will outperform the company built around it.

Saylor, in response during a Bloomberg interview, defended Strategy’s model. He emphasized that Strategy is not just a Bitcoin holder but the largest issuer of Bitcoin-backed credit instruments globally. The company, according to Saylor, funds its BTC purchases through preferred stock offerings named “Stride,” “Strife,” and “Strike,” rather than diluting common shareholders.

“If the stock trades at a weak premium, we’ll just sell the preferreds,” Saylor said, suggesting flexibility in funding. He also warned that Chanos could face liquidation if Strategy stock rallies, citing the firm’s ability to generate Bitcoin yield as a key factor overlooked by critics.

The ongoing debate highlights the deep division between traditional finance perspectives and Bitcoin-focused corporate strategies—raising questions about how to value crypto-centric public companies in an evolving financial landscape.