Asset Management Giant Sells Bitcoin for $1,100,000,000 Profit
London-based asset management firm Ruffer is revealing that it locked in a profit of more than a billion dollars after investing in Bitcoin for a few months.
In an interview with the Times, Ruffer’s investment director Hamish Baillie says the firm made an initial investment of around $600 million in November last year. The investment yielded massive gains five months later.
“When the price doubled, we took some profits for our clients in December and early January. We actively managed the position and by the time we sold the last tranche in April, the total profit was slightly more than $1.1 billion.”
Baillie further discloses that the profits made from the Bitcoin investment have now been placed in inflation-proof assets such as bonds whose yields are determined by the inflation index, which rises when the inflation rate goes up and vice versa.
Besides being a profitable investment, Baillie notes that Bitcoin is living up to its potential as a store-of-value asset.
“[Western] currencies have been relatively stable, but imagine if you’d held Bitcoin for the last ten years and you lived in Venezuela. It’s been a wonderful store of value outside the monetary system…
And you can transfer money across borders, which is helpful, particularly in developing nations.”
Regarding concerns over the flagship cryptocurrency’s carbon footprint, Baillie argues that up to 70% of the electricity used in mining Bitcoin is generated from renewable sources.
“There is a lot of hyperbole and misinformation out there when it comes to Bitcoin’s carbon footprint… Bitcoin uses less electricity than the gaming industry.
Probably somewhere between 40% and 70% of the electricity used is coming from renewable sources.”
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Author: Daily Hodl Staff
