Legendary investor George Soros, also known as the “financial crocodile,” recently disclosed through his family office, Soros Fund Management, that he holds over $257 million worth of convertible corporate bonds issued by MicroStrategy (NASDAQ:MSTR).
George Soros, who is renowned as the “financial crocodile” and is often compared to Warren Buffett, has previously criticized Bitcoin as a bubble. However, in recent years, his stance seems to have changed. It has been discovered that he has purchased convertible corporate bonds of MicroStrategy, the dominant holder of Bitcoin among US-listed companies, indirectly investing in Bitcoin.
According to the filing submitted by Soros Fund Management to the US Securities and Exchange Commission (SEC) in mid-May, as of the end of the first quarter of 2024, Soros’ funds held a total of over $257 million worth of MicroStrategy convertible corporate bonds, with principal amounts of $90 million and $31.292 million, respectively.
Source: Excerpt from Soros Fund’s May 13F filing on the SEC website
In contrast, the previous filing by the company in mid-February stated that as of the end of 2023, Soros’ funds held approximately $172 million worth of two MicroStrategy convertible corporate bonds, with principal amounts of approximately $138 million and $31.292 million, respectively.
By comparing the data in the two filings, it can be speculated that Soros Fund Management may have sold some MicroStrategy convertible bonds during the first quarter of this year, or converted them into stocks and then sold them to realize profits.
Source: Excerpt from Soros Fund’s February 13F filing on the SEC website
According to Bloomberg Billionaires Index, the 93-year-old Soros, with a net worth of $6.5 billion, ranks 447th on the global rich list. He gained worldwide fame for making over $1.1 billion by shorting the British pound in 1992, which led to the Bank of England’s bankruptcy. In the subsequent Asian financial crisis in 1997, he targeted the currencies of countries such as Thailand and Malaysia, making him a controversial financial crocodile.
It is worth noting that Soros himself publicly stated in 2018 that “Bitcoin is a typical bubble” and should not be regarded as a currency.
However, Soros’ attitude towards Bitcoin seems to have changed in recent years. Soros Fund Management, as the family office of the Soros family, has been rumored to have started trading cryptocurrencies in 2021. The chief investment officer of the company also stated in an interview that cryptocurrencies have become mainstream, and although they don’t hold a lot, “they also hold some coins.”
Previously, the company had also disclosed its holdings of well-known cryptocurrency concept stocks, such as Marathon Digital Holdings, a Bitcoin mining giant, and Block, a payment giant founded by Jack Dorsey. Soros also heavily shorted Silvergate Bank, a cryptocurrency-friendly bank that was forced to go bankrupt during the banking crisis.
The company has been investing in MicroStrategy convertible bonds due in 2025 since the end of 2021. At that time, the principal amount of the bonds was over $16 million, but the reported value was less than $27,000. Currently, Soros Fund Management holds 214,400 bitcoins, worth over $14.5 billion, making MicroStrategy, which is considered a popular indirect investment in Bitcoin by many institutions, a hot target.
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