AQR Founder Cliff Asness Questions the Strategy of "Convertible Bond Protection for Bitcoin Investments"

Cliff Asness, founder of AQR Capital Management, stated on social platform X that he agrees with renowned short seller Jim Chanos’s criticism of Strategy founder Michael Saylor. The controversy centers on Saylor’s claim that companies have downside protection when purchasing Bitcoin through convertible bond financing, asserting that “this type of debt cannot be forcibly repaid” and that stocks can be used for repayment if Bitcoin prices fall. Both Asness and Chanos believe this statement is incorrect, questioning whether Strategy has the ability to repay the approximately $10 billion raised through convertible bonds.