Jim Cheminos Yaro criticized the policy of the management of Microstrategy

The famous investor and skeptic Jim Chaseno said that he bets at the same time on the growth of bitcoin and the fall in Microstrategy shares. In an interview with CNBC, he called his arbitration strategy, in which he sells the company’s shares and buys a digital coin. According to him, this is similar to “acquiring something for $ 1 and subsequent implementation for $ 2.5.” The specialist emphasized: he considers such a reassessment of inadequate shares.

According to Cheinos, Microstrategy, which acquired more than a lot of BTC, has become a “replacement of bitcoin” in the stock market. However, he indicated that the company uses borrowed funds to accumulate digital assets and is traded with a large margin with respect to the real value of its reserves.

Cheminos criticizes not only Microstrategy itself, but also organizations that copy its model. He noted that such institutions “sell the idea to retail investors: we will buy bitcoin through a corporate structure, so evaluate us with the same premium as Microstrategy.” He called such thinking “absurd” and added that he actually repeats the actions of the company itself, only in the opposite direction – selling its shares and directly buying BTC.

Over the past year, Microstrategy securities have increased in price by more than 220%, while bitcoin has risen in price by 70%. This, according to Cheinos, indicates excessive speculative activity from retail investors, which he uses in his trade.

The expert also commented on the influence of political factors, mentioning the support of cryptocurrencies from Donald Trump and the increase in the cost of digital currencies against the background of trading tariffs. This, in his opinion, warms up interest, but does not justify the revaluation of companies investing in them.

CHEENISO founded Kynikos Associates and now manages the family office, advising institutional investors. Its sharp criticism of Microstrategy and similar companies can strengthen the discussion of the sustainability of business models built on indirect ownership of cryptocurrencies.

Author

Peter Ivanov