The Soros Fund Management, a fund founded in 1970 by billionaire George Soros, would invest indirectly in Bitcoin through industrial companies, such as Michael Saylor’s MicroStrategy.
According to CoinDesk, which can also be seen in the quarterly report sent to the SEC, the Soros fund turned to the options market for this, buying 50,000 call options and 50,000 put options from MicroStrategy.
Since MicroStrategy is the publicly traded company with the most bitcoins in cash and currently holds BRL 15.6 billion in BTC, MicroStrategy shares are one of the easiest ways for major investors to gain exposure to Bitcoin without necessarily buying it. After all, MicroStrategy stocks often revolve around Bitcoin fluctuations.
While CoinDesk points out that the “nature of these transactions is not clear,” the paper also reveals that the search for Bitcoin would be the most likely hypothesis.
“The strike is likely a hedging strategy on MicroStrategy stock via options”one trader told CoinDesk.
Finally, it is also noted that Soros Fund Management owns US$200 million (R$1 billion) worth of MicroStrategy shares.
George Soros Fund also invested in Bitcoin mining
In addition to MicroStrategy, the George Soros fund’s quarterly report points out that the company is exposed to Marathon Digital Holdings, a famous Nasdaq-listed Bitcoin miner.
According to the information, the fund is said to have US$39.6 million (R$206 million) in Marathon convertible bonds. That is, these are securities that can be converted into shares of the mining company, which, like MicroStrategy, is highly dependent on the price of Bitcoin.
Therefore, it is possible that Soros Fund Management is using these two companies to indirectly invest in Bitcoin.
A third featured in the report is Silvergate Bank, famous for its ties to bankrupt brokerage firm FTX. However, Soros’s fund would bet against the bank’s stock, with 100,000 put options in this case, which is still a strategy for profiting from fluctuations in the cryptocurrency market.
Finally, all of these “twists” from the George Soros fund appear to be a clear strategy for participating in the Bitcoin market, while US regulators are not disclosing easier ways to do so, such as a spot ETF.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
