Recent remarks by Michael Saylor, the founder of Strategy, elicited criticism from prominent Wall Street investors Jim Chanos and Cliff Asness. The investors disagree with his claims regarding the safety of the company's debt in the event of a Bitcoin market downturn.
Michael Saylor and His Bitcoin Plan
On June 20, 2025, Michael Saylor declared that the company's debt poses no risk even if Bitcoin crashes. In a video posted June 19, he stated, "It's not debt; it's convertible debt. It's unsecured, no recourse. What that means is that Bitcoin could go from $100K to $1K. The debt’s not getting called. There's no recourse." Saylor also asserted that the company could settle the debt in stock, even if Bitcoin drops by 75%.
Criticism from Jim Chanos
Jim Chanos disagreed with Saylor's statement, tweeting, "There is of course recourse to Strategy if the convertible debt has not converted to equity when due. How does he not know this?" He claims the company remains obligated to repay the debt regardless of market conditions.
Support from Cliff Asness and His Remarks
Cliff Asness, who also spoke against Saylor, backed Chanos, saying, "@RealJimChanos is of course right." He explained that repaying with stock isn't always viable and added, "You can’t pay with stock if the debt holders don’t convert, and good luck issuing new equity if BTC crashes and equity is negative." Asness referred to Saylor's reasoning as "Total utter unconscionable bullshit."
The disputes surrounding Michael Saylor's statements highlight the growing disagreements within the cryptocurrency industry and the challenges faced by companies with significant Bitcoin investments. The perspectives of Chanos and Asness serve as a caution against overconfidence in the resilience of crypto markets.
