Buffett Devotee Can’t Get Enough Bitcoin

According to a recent report by The Wall Street Journal, Mark Casey, an equity portfolio manager at Capital Group, is aggressively betting on Bitcoin despite being a follower of Berkshire Hathaway founder Warren Buffett, who is known as one of the critics of the original cryptocurrency.

Casey is betting on Bitcoin because he is convinced that the leading cryptocurrency by market capitalization will eventually be able to supplant gold as the main store of value.

He claims that Capital Group views the flagship cryptocurrency as a commodity. It is worth noting that the Los Angeles-based investment manager boasts roughly $3 billion worth of assets.

The influential portfolio manager, who has emerged as one of the most vocal Bitcoin backers within traditional finance, is convinced that Bitcoin will eventually be able to surpass the market cap of the yellow metal. At the same time, he does not think that other cryptocurrencies are worth anything at all.

Major bet on Saylor

Capital Group made waves in 2021 by acquiring a massive $500 million stake in Michael Saylor’s Strategy (formerly MicroStrategy). It initially owned more than 12% of the company, but its stake has now shrunk to 8% due to share dilution.

After the shares of Strategy experienced an enormous rally, the dollar value of Capital Group’s stake now stands at more than $6 billion.

In addition, the investment manager group has made bets on other prominent Bitcoin treasury firms, including Japan-based Metaplanet.

Plunging shares

Over the past two months, Bitcoin treasury firms have severely underperformed, which indicates that investor enthusiasm has started to wane.

Moreover, as reported by U.Today, JPMorgan analysts recently warned that Strategy’s failure to make it to the S&P 500 could also be an ominous sign for other Bitcoin treasury firms.