Veteran short-seller James Chanos of Kynikos Associates is once again taking a shot at Strategy Inc. (NASDAQ:MSTR), calling its valuation framework not just flawed, but absurd.
What Happened: On Monday, Chanos slammed Strategy’s claim that its valuation should reflect not just the net asset value (NAV) of its Bitcoin holdings, but also a multiple on the unrealized gains, while speaking on Bloomberg’s Odd Lots podcast.
What pushed him “into orbit,” he says, was founder Michael Saylor’s argument that appreciation in Bitcoin should be treated like recurring profit, and capitalized accordingly.
See Also: Strategy Adds 4,980 Bitcoin, Ups Total Stack To $42 Billion
He went on to mock this logic with an analogy. “That’s like saying, my whole net worth is in a house that’s worth $400,000 …