UK Asset Manager Ruffer Investments Buys $744 Million of Bitcoin
This is equal to about 2.7% of their total $20 Billion assets under management. The UK-based asset manager confirmed in a statement that they made the investment back in November.
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Ruffer Investments is the latest in a growing list of major multi-billion dollar corporations that are investing in Bitcoin and cryptocurrency. As this trend continues we are likely to see Bitcoin continue to push new all time high prices.
With clearer regulations coming in the beginning of 2021, many companies will start to feel the pressure to invest some of their free cash flow into Bitcoin.
If Microstrategy is any indicator investing in cryptocurrency could help stock prices skyrocket, as the value of the Bitcoin held in the company’s treasury increases in value it will cause the company’s stock to also increase in value.
According to a spokesperson for Ruffer Investments the investment in Bitcoin is “primarily a protective move” to “hedge” against “some of the risks that we see in a fragile monetary system and distorted financial markets.” Very similar to what other major corporations have stated.
Many companies are starting to look for alternatives to holding fiat currency in their treasuries because of massive money printing by governments. Bitcoin is a great alternative because it is the best performing asset of the decade, out performing virtually all publicly traded stocks, indexes, gold, and every other commodity.
Holding cryptocurrency in company treasuries may become standard practice in the future as it is an easy way to protect against inflation while also creating a huge profit for shareholders over the long term.
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