Wall Street's Big Short: Corporate Bitcoin Treasury Craze Is Replaying SPAC-Style Bubble Risk

Wall Street's big short seller Jim Chanos is now sounding the alarm about the hot phenomenon of corporate Bitcoin treasuries, comparing it to the frenzied SPAC (special purpose acquisition company) wave of 2021—when $90 billion was raised in just three months, only to end in a disastrous crash. But this time, the difference is that publicly traded companies are buying Bitcoin by issuing convertible bonds and preferred stock, without conducting any other substantive business. "What we're seeing now in the Bitcoin treasury market is eerily similar to the SPAC craze of 2021," Chanos said on a podcast this week, "with fairly large announcements coming out almost every day—amounts in the 'hundreds of millions every night.'" [Odaily Planet Daily News]