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Notable short sellers criticize Strategy Company for its new purchase of Bitcoin, accusing it of relaxing shareholder protection measures.
According to reports, renowned short seller James Chanos, known for successfully shorting Enron before its collapse in 2007, is criticizing Strategy Company. He believes that the company recently purchased only $51 million worth of Bitcoin and relaxed a key safeguard aimed at preventing shareholder dilution.
In a statement on Monday, Chanos indicated that the latest Bitcoin purchasing volume from Strategy Company suggests weak demand for its preferred stock, and accused its chairman, Michael Saylor, of undermining key protections for shareholders.
In the Q2 2025 financial report, Strategy stated that it would only issue stock to pay debt interest or preferred stock dividends when its mNAV (market value to net asset value ratio) was below 2.5 times, and would not use it to purchase more Bitcoin.