Soros holds over US$257 million in micro-strategy convertible bonds! Embracing Bitcoin in disguise?

As famous as the stock god Buffett, the legendary investor George Soros, known as the "financial giant", once criticized Bitcoin as a bubble, but in recent years his stance seems to have changed. , was recently discovered to have purchased convertible corporate bonds from MicroStrategy, a U.S. listed company that dominates Bitcoin holdings, which is equivalent to indirect investment in Bitcoin.

Holds $257 million in micro-strategy convertible corporate bonds

As of 2024, according to Soros Fund Management’s filing with the U.S. Securities and Exchange Commission (SEC) in the middle of this month At the end of the first quarter, Soros's funds held two tranches of convertible corporate bonds from MicroStrategy (NASDAQ: MSTR) with a total value of more than US$257 million, with principal amounts of notes of US$90 million and US$31.292 million respectively.

Taken from the Soros Fund’s May 13F filing disclosed on the SEC official website

According to the company’s previous filing in mid-February, as of At the end of 2023, the two tranches of MicroStrategy convertible corporate bonds held by Soros' funds were worth approximately US$172 million, and the principal amounts of the notes were approximately US$138 million and US$31.292 million respectively.

Comparing the data from the two documents, the principal amount of Soros Fund Management's convertible bond notes due in 2027 with a conversion price of $1,432 decreased by approximately $47.74 million, while MSTR's stock price closed at $1,684.84 yesterday.

Therefore, it is speculated based on the document information that the company may have sold some micro-strategy convertible bonds during the first quarter of this year, or converted them into shares and then sold them to take profits.

Taken from the Soros Fund’s February 13F filing disclosed on the SEC official website

Soros once criticized "cryptocurrency is a bubble"

According to the Bloomberg Billionaires Index, the 93-year-old Soros has a net worth of US$6.5 billion and ranks 447th on the world's richest list. He was famous for shorting more than 10 billion pounds in 1992 and making a profit of more than US$1.1 billion. He is world-famous and has been dubbed "the man who bankrupted the Bank of England".

Subsequently, during the 1997 Asian Financial Crisis, he attacked the currencies of Thailand, Malaysia and other countries, becoming a controversial financial giant. It is worth noting that Soros himself publicly stated in 2018 that "Bitcoin is a classic bubble” and cannot be considered a currency: Cryptocurrency is a misnomer and a classic bubble, which is always based on some misunderstanding. Bitcoin is not a currency because currency is supposed to be a stable store of value, and a currency that can fluctuate 25% in a day cannot be used to pay wages because wages will drop by 25% in a day.

Start laying out the cryptocurrency field in 2021

However, Soros’s attitude towards Bitcoin seems to have changed in recent years. Soros Fund Management Company, as the Soros family office, began to be rumored in 2021. On the news of starting to trade cryptocurrencies, its investment manager pointed out in the interview that cryptocurrencies have become mainstream. Although not many, "they also hold some coins."

The company also previously disclosed last year It holds well-known cryptocurrency concept stocks such as Bitcoin mining giant Marathon Digital Holdings and payment giant Block founded by Jack Dorsey. Soros also heavily shorted Silvergate Bank, a crypto-friendly bank that was forced into bankruptcy during the banking crisis last year.

The company began investing in MicroStrategy’s convertible bonds due in 2025 as early as the end of 2021 (at that time, the principal amount of the note exceeded US$16 million, but the declared value was only less than US$27,000), and The micro-strategy, which currently holds 214,400 Bitcoins worth more than $14.5 billion in Bitcoin, has been regarded by many institutions as a popular target for indirect investment in Bitcoin in recent years.

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