Legendary investor George Soros, 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).
Previously, Soros had criticized cryptocurrencies 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.
Comparing the data from the two filings, it can be speculated that Soros Fund Management may have sold some MicroStrategy convertible bonds or converted them into shares for profit during the first quarter of this year.
George Soros, aged 93, has a net worth of $6.5 billion, ranking 447th on the Bloomberg Billionaires Index. He gained worldwide fame for profiting over $1.1 billion by shorting the British pound in 1992 and is famously known as the “man who broke the Bank of England.” In the subsequent 1997 Asian financial crisis, he targeted the currencies of Thailand, Malaysia, and other countries, making him a controversial financial figure.
It is worth noting that Soros himself publicly stated in 2018 that “Bitcoin is a typical bubble” and should not be considered a currency. However, in recent years, Soros’ attitude towards Bitcoin seems to have changed. Reports suggest that Soros Fund Management, as the family office of the Soros family, has been rumored to have started trading cryptocurrencies in 2021. In an interview, the Chief Investment Officer of the fund stated that cryptocurrencies have become mainstream and although they do not hold a significant amount, “they also hold some coins.”
Previously, the company had also disclosed holdings in 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 crypto-friendly bank that was forced into bankruptcy during the banking crisis.
The company began investing in MicroStrategy convertible bonds due in 2025 as early as the end of 2021. Currently, it holds 214,400 Bitcoins, worth over $14.5 billion. MicroStrategy has become a popular target for indirect Bitcoin investments among many institutions.