Billionaire and crypto investor Mike Novogratz disclosed that he had purchased stock from social media company Facebook Inc.
Novogratz Gives Reasons For Buying Facebook’s Stock
In a Bloomberg interview, Novogratz said that he purchased the shares to gain from Facebook’s forthcoming crypto-asset, Diem, and its crypto wallet Novi, set to launch later this year.
The CEO of Galaxy Digital Holdings Ltd, known for frequently commentating on Bitcoin price action, has estimated that about 20% of his net worth is invested in cryptos. He said he had made $250 million investing in Bitcoin and Ethereum and bought a private jet with the proceeds.
Speaking on why he bought the Facebook stock, Novogratz said he wanted to benefit from crypto’s rise and is shorting the five-year Treasury as a hedge against policymakers pulling back monetary support.
“All of a sudden, you’re going to have 2.4 billion people connected to this crypto space, and it’s going to be a public equity way to participate in payments and blockchain through their Diem project and their Novi wallet. I thought Facebook was an interesting buy on the chart. I took out 290, looks like it’s going to go higher,” Novogratz added.
The social media giant rebranded its cryptocurrency from Libra to Diem last year, and its wallet subsidiary from Calibra to Novi.
The project’s governance Libra Association and some of its founding members are still intact. They are now called the Diem Association. They include LYFT Inc, Uber Technologies Inc, Shopify Inc, and Coinbase.
Meanwhile, Diem is proposed to be more of a stablecoin and will not be as volatile as a cryptocurrency like Bitcoin.
Novogratz Bullish On Crypto
According to the Bloomberg Billionaires Index, the billionaire, a former partner at Goldman Sachs Group Inc, is reportedly worth more than $5 billion. He is reputedly one of the biggest supporters of crypto.
Last month, Novogratz disclosed that he had expanded his Bitcoin portfolio, adding more BTCs purchasing the digital coins at a price level of $56,500. He had tweeted about the world’s largest cryptocurrency by market cap, mentioning that he is still bullish on Bitcoin.
The billionaire feels that Bitcoin is poised to be a competitor to gold as a store of value and may exceed the precious metal’s market cap. He added that at the beginning of the year, all he targeted was for Bitcoin to hit $60,000 because that would have been 10% of gold’s market cap. However, that ideology has changed for him as he emphasized that Bitcoin’s continued surge changes everything.