Bitcoin (BTC) supporter and MicroStrategy ($MSTR) co-founder Michael Saylor recently received harsh criticism from famous short-seller Jim Chanos. Chanos publicly expressed strong dissatisfaction, calling Saylor's corporate valuation method "typical financial gibberish".
Chanos pointed out that Saylor's claim to evaluate MicroStrategy's corporate value not only by Bitcoin holdings' net asset value (NAV) but also by a multiple of its changes is nonsensical. He sharply criticized via social media, stating that "the claim itself of determining business value by adding a multiple to NAV changes is absurd".
In fact, MicroStrategy is currently the listed company holding the most Bitcoin worldwide, and Saylor has received high market attention through the company's Bitcoin strategy. Particularly recently, he explained that they continue purchasing Bitcoin through three preferred stock products–Stride, Strife, and Strike–without issuing bonds or common stocks.
In response, Saylor countered in a Bloomberg interview that Chanos seems to lack understanding of MicroStrategy's business model. He emphasized, "We are the world's best Bitcoin-backed credit product issuer. The company should be evaluated based on the Bitcoin yield it can generate".
Interestingly, Chanos mentioned a dual position strategy of short-selling MicroStrategy while simultaneously investing in Bitcoin. To this, Saylor confidently warned, "If the stock rebounds, Chanos will be liquidated".
This dispute has reignited discussions about various valuation models within the market related to Bitcoin investment methods. Currently, MicroStrategy is showing an upward stock trend against a Bitcoin bull market, partially proving the effectiveness of its strategy. It suggests that investors should consider not just Bitcoin holdings, but also how companies are monetizing them.
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