June 12 (Reuters) - Prominent short-seller Jim Chanos

has questioned Strategy's valuation premium over its

bitcoin holdings, saying Chairman Michael Saylor's tactics to

boost the company's returns are "financial gibberish."

"...Mr. Saylor wants you to value his business based not

only on the net value of his Bitcoin holdings (NAV) at market,

but additionally with a multiple on the change in that NAV...,"

he said in a post on X on Tuesday.

Also, in an interview with Bloomberg Television on

Wednesday, Chanos said that Strategy's market value should not

exceed the value of its bitcoin holdings.

As of June 9, the company held 582,000 bitcoins, worth

$62.27 billion, while its market value of $108 billion was about

1.74 times its crypto holdings.

Chanos and other Strategy critics have argued that this

disconnect was creating an arbitrage opportunity for buying the

cryptocurrency and shorting the firm's shares.

Strategy did not immediately respond to a Reuters request

for comment.

MIMICKING STRATEGY

Following Strategy's footsteps, companies like GameStop ( GME )

and U.S. President Donald Trump's Trump Media &

Technology ( DJT ) have also pivoted their operations to

building bitcoin reserves.

Strategy's shares are up nearly 34% this year, eclipsing

bitcoin's 14.2% climb.

Saylor has argued that critics overlook his company's

innovative use of bitcoin-backed financial instruments, which he

insists justify the premium at which the company trades and

protect it from the risks Chanos highlights.

The company actively issues bitcoin-backed credit

instruments, such as non-cumulative preferred stock, allowing it

to raise capital without diluting common shareholders or taking

on traditional debt obligations.