Michael Saylor Hints At Selling Bitcoin To Fund MSTR Dividends In 'Worst-Case Scenario,' Short-Seller Jim Chanos Calls It 'Financial Gibberish' - Strategy (NASDAQ:MSTR)

Core Viewpoint - Jim Chanos criticized Michael Saylor's financial strategy regarding MicroStrategy's Bitcoin holdings, labeling it as "financial gibberish" and questioning the sustainability of selling Bitcoin or its options to fund dividend payments [1][5]. Group 1: Financial Strategy and Criticism - Michael Saylor suggested a "worst-case scenario" plan where MicroStrategy could sell calls or warrants on its Bitcoin holdings or liquidate some Bitcoin to cover dividend obligations [3]. - Chanos expressed disbelief at Saylor's strategy, highlighting it as a circular and unsustainable financial maneuver [5]. - The market reacted positively to Saylor's remarks, with MicroStrategy's stock rising nearly 6% following the announcement [4]. Group 2: Bitcoin Holdings and Financial Position - MicroStrategy has built a substantial corporate treasury of over 600,000 BTC, financed largely through debt and equity offerings [6]. - As of September 15, the company acquired an additional 525 BTC for approximately $60.2 million, raising its total Bitcoin holdings to 638,985 BTC, with an aggregate purchase price of $47.23 billion [7]. - The average purchase price for Bitcoin held by MicroStrategy is $73,913 per coin [7]. Group 3: Market Performance - MicroStrategy's stock rose 5.89% on Thursday and is up 16.37% year-to-date, with a significant increase of 141.34% over the year [10]. - Despite the positive long-term trend, the stock maintains a weaker price trend in the short and medium terms [10].