Legendary Short-Seller Chanos Slams Bitcoin Treasuries as ‘Financial Gibberish’

Adoption Bitcoin Bitcoin Reserve

Crypto Journalist

Amin Ayan

Crypto Journalist

Amin Ayan

About Author

Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has...

Author Profile

Share

Copied

Last updated: 

June 30, 2025

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Legendary short-seller Jim Chanos is taking aim at the rise of Bitcoin treasury companies that raise funds solely to stockpile the cryptocurrency.

In a recent live interview for the Odd Lots podcast, Chanos criticized the business model popularized by Michael Saylor’s Strategy, calling its approach “financial gibberish.”

Chanos noted that Strategy’s market capitalization now tops $100 billion, nearly double the roughly $60 billion worth of Bitcoin it holds on its balance sheet.

Chanos Dismisses Saylor’s ‘Risk-Free’ Bitcoin Treasury Pitch

Saylor has defended Strategy’s valuation, arguing that the company’s ability to raise capital at a premium effectively renders its strategy “risk-free.” Chanos, however, rejected that logic outright.

“There’s a wonderful sales job that’s being done about the fact that this is an economic engine in and of itself,” he said.

“And so therefore, terms like ‘Bitcoin yield’ are used and I’ve called them financial gibberish because they are.”

His pointed comments continue a long-running feud with Saylor over Strategy’s true value, which Chanos argues is wildly disconnected from the worth of its Bitcoin holdings.

He warned that investors are being misled by flashy narratives into believing these companies generate meaningful economic activity simply by accumulating digital assets.

Alongside his critique of Bitcoin treasuries, Chanos turned his attention to the red-hot artificial intelligence sector, cautioning that the AI boom could face a sharp correction.

He drew parallels to the late-1990s frenzy surrounding networking giants like Cisco and Lucent, which rode the early internet wave to towering valuations before seeing orders collapse during the TMT bust.

“There is an ecosystem around the AI boom that is considerable, as there was for TMT back in ‘99 and 2000,” Chanos said.

“But it is a riskier revenue stream because if people pull back, they can pull back CapEx very easily.”

He explained that corporate spending on data centers and semiconductors could quickly dry up if macroeconomic headwinds, like a cooling labor market or rising tariffs, force companies to pause investments.

While Chanos acknowledged the AI sector has yet to hit a tipping point, he warned that many investors may be underestimating the risk of a sudden reversal in corporate demand.

VanEck Raises Concerns Over Corporate Bitcoin Strategies

Matthew Sigel, head of digital asset research at VanEck, has also voiced concerns over the Bitcoin treasury strategies adopted by some publicly traded firms, warning that aggressive BTC accumulation could ultimately hurt shareholders.

Sigel singled out the use of at-the-market (ATM) share issuance programs, arguing that these can become dilutive if a company’s stock price nears its Bitcoin net asset value (NAV).

As reported, over the past week, at least nine UK firms, from web design startups to mining businesses, have announced plans to buy Bitcoin or revealed recent purchases to add the cryptocurrency to their corporate treasuries.

Among the UK firms, AI services provider Tao Alpha disclosed plans to raise £100 million after revealing a bitcoin treasury plan that triggered investor interest.

Smarter Web Company, a small website design firm, saw its market value rocket from £4 million to over £1 billion in just two months after announcing its Bitcoin purchases in April, although shares have since cooled.