On June 22, AQR Capital Management founder Cliff Asness stated on a social platform that he agrees with renowned short-seller Jim Chanos’s criticism of MicroStrategy founder Michael Saylor. The controversy centers around Saylor’s claim that financing Bitcoin purchases through Convertible Bonds offers downside protection, stating “this type of debt will not be forcibly repaid” and can be settled with stock when Bitcoin prices fall. Both Asness and Chanos believe this assertion is incorrect and question whether MicroStrategy has the capability to repay the approximately $10 billion raised through Convertible Bonds.
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AQR founder supports Jim Chanos: questions MicroStrategy's billion-dollar convertible bond financing model
On June 22, AQR Capital Management founder Cliff Asness stated on a social platform that he agrees with renowned short-seller Jim Chanos’s criticism of MicroStrategy founder Michael Saylor. The controversy centers around Saylor’s claim that financing Bitcoin purchases through Convertible Bonds offers downside protection, stating “this type of debt will not be forcibly repaid” and can be settled with stock when Bitcoin prices fall. Both Asness and Chanos believe this assertion is incorrect and question whether MicroStrategy has the capability to repay the approximately $10 billion raised through Convertible Bonds.