Veteran short seller Jim Chanos slammed Strategy Inc. (NASDAQ:MSTR) for touting the stability of its perpetual preferred shares on Wednesday, even as its main stock continues to get hammered.
Chanos Takes Fresh Dig At Strategy
Chanos reacted to a Bloomberg interview where Strategy CEO Phong Le described the firm’s Perpetual Stretch Preferred Stock (NASDAQ:STRC) closing at $100 as the “story of the day” and “exactly how it was engineered to perform.” Michael Saylor, Executive Chairman of Strategy, echoed the point.
However, Chanos, a scathing critic of Strategy’s business model, was not convinced.
“Can you imagine any other CEO with a plunging stock saying, ‘The story of the day is that our junk debt is still trading at par,’” he said.