Michael Saylor: I Don't Pay Attention to Jim Chanos' Short Positions

Strategy (NASDAQ: MSTR) CEO Michael Saylor stated that he does not pay much attention to famed short-seller Jim Chanos’ attempts to profit from the company's recent decline.

In a statement made on November 13, Saylor said, “I don’t think about Jim Chanos much,” and expressed that investors do not understand the true potential of Bitcoin. He added, “They don’t understand much about digital capital and digital credit.”

Saylor emphasized that short-sellers have a negative outlook on market trends. “Short sellers are unaware of the potential of AI or digital assets to change the world,” he said. “No great success was ever created by a short seller.”

Chanos has bet against Strategy over the past year, claiming that the value of the company's Bitcoin holdings is unsustainable.

Strategy developed a large business model by borrowing to buy Bitcoin over the past five years, becoming an option for investors who do not want to deal directly with Bitcoin. The company traded above its net asset value, allowing it to raise new stock to buy Bitcoin. In November 2024, this premium reached up to three times the net asset value.

Chanos described this situation as “nonsense,” stating, “This is equivalent to saying that when the value of my house increased from $450,000 to $500,000 last year, it wasn’t worth $500,000, but worth $1.5 million. Of course, this is absurd.”

Chanos’s strategy is: Bitcoin long, Strategy short.

This trade has benefitted investors. Over the past year, Bitcoin has increased by 38%, while Strategy shares have lost around 32% of their value, and the net asset value multiple has dropped to 1.2.

In light of these developments, Chanos announced earlier this month that he has closed his bets against Saylor. “The thesis has largely played out,” said Chanos, noting that he expects premiums to decrease over time as Strategy continues to issue common stock.