The founder and managing partner of Chanos & Company Jim Chanos criticized the economic model of Strategy, the largest public Bitcoin holder company.

Short-Seller Coanos said that the capitalization of Strategy in $ 100 billion and the investment attractiveness of the company’s shares are inadequate to the real market value of its bitcoin assets, which are about $ 60 billion or 2.8% of the total issue of the first cryptocurrency.

The economic model adheres to the company Strategy under the leadership of Michael Saylor, involves attracting financing and buying bitcoins through the release of convertible bonds and shares. This erodes the share of shareholders and increases the debt burden, the founder of Chanos & Company believes.

He called Sailor a “excellent seller”, pointing out the risks for investors, especially private ones who perceive the purchase of MSTR shares as a proxy investment in cryptocurrency.

“Sailor did a wonderful work on promoting and selling Strategy shares, which in itself became an economic engine. But the volatility of bitcoin and the financial structure of the company create vulnerabilities that can lead to a fall in the value of shares. Therefore, when such arguments as “yield of bitcoin” are used, I perceive them as a financial hubby, since they are so, ”said Chaino.

The head of Chanos & Company said that Strategy inspired other companies to similar steps, which increased corporate demand for bitcoins. However, Coanos believes, this only emphasizes the risks of revaluation of companies using bitcoins to increase capitalization, and leads to overheating of the market, which, potentially, can unpredictably increase volatility. Especially if investors begin to doubt the stability of the proposed business models.

Earlier, the ARKHAM Intelligence platform analysts reported that the Kingdom of Butane stood bitcoins in the amount of $ 1.3 billion and took third place among countries with state reserves of the first cryptocurrency.