Real vision invests 10% of its cash holdings into Bitcoin as of late and CEO Raoul Pal explained why his company decided to do so. We find out more in today’s Bitcoin news.
The Financial TV Channel Real Vision invests 10% of its cash holdings into BTC while Raoul Pal invested 98% of its liquid assets into both ETH and BTC. The company invested 10% of its cash holdings in BTC around three months ago according to the CEO. The company joined the list of companies that invested in the number one cryptocurrency including Microstrategy and Jack Dorsey’s Square app. According to BitcoinTreasuries, these companies hold in a total of 243,000 BTC worth $4.5 billion. Pal noted:
“We think it’s a good way to hold excess cash. It’s not like I haven’t done the work on it, I’ve been involved in this space since 2012.”
#Bitcoin is a swarm of cyber hornets serving the goddess of wisdom, feeding on the fire of truth, exponentially growing ever smarter, faster, and stronger behind a wall of encrypted energy.
— Michael Saylor (@michael_saylor) September 18, 2020
Real Vision invested the cash holdings in BTC using crypto lending service BlockFi and it also lends out its BTC using the service which offers 6% APY. Pal explained:
“It’s only 10%. What’s the worst that could happen? It goes down 50% and we lose 5% of our treasury. Well we’re a subscription-based business; we generate cash, so should be fine. But if it goes up 10X, it makes a decent difference.”
Pal said that the reasons why companies haven’t yet invested in BTC is because the corporate treasurer has to justify putting the company assets into crypto and in order to do so, he needs to be able to reassure the shareholders:
“He needs some piece of paper written by an investment bank or somebody with credibility that says this is a really good diversification asset that adds overall value to your portfolio. The moment that kind of research comes out—and there is some of it coming out—that will completely shift the game. Talking cyber hornets is not going to get a pension fund to buy it.”
Ok, last bomb – I have a sell order in tomorrow to sell all my gold and to scale in to buy BTC and ETH (80/20). I dont own anything else (except some bond calls and some $'s). 98% of my liquid net worth. See, you can't categorize me except #irresponsiblylong Good night all.
— Raoul Pal (@RaoulGMI) November 30, 2020
Pal invested about $25,000 into crypto and when its price increased 100% in a month, he sold it for a neat profit. He bought it back later and made 10x gains at one point. He eventually sold over the Bitcoin/Bitcoin Cash split because he didn’t understand the differences:
“Ok, last bomb – I have a sell order in tomorrow to sell all my gold and to scale in to buy BTC and ETH (80/20). I dont [sic] own anything else (except some bond calls and some $’s). 98% of my liquid net worth. See, you can’t categorize me except #irresponsiblylong Good night all.”
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