Billionaire investor George Soros has made some notable changes to his portfolio in the fourth quarter of 2022. Soros, known for his successful bets on currencies and commodities, has recently divested his positions in Twitter and COVID-19 play Zoom, while taking positions in stocks linked to cryptocurrencies.
Shorting Zoom and Twitter
According to regulatory filings, Soros Fund Management sold its entire stake in Twitter, which was worth around $71 million as of the end of the third quarter. The move comes as the social media giant has faced criticism for its handling of misinformation and hate speech on its platform. In addition, Soros also sold his entire stake in Zoom, which had been one of the biggest beneficiaries of the pandemic-driven shift to remote work and education. The stake was worth around $8.5 million at the end of Q3.
On the other hand, Soros has taken positions in several companies that are involved in cryptocurrencies. His fund has invested around $25 million in MicroStrategy, a business intelligence firm that has been buying large amounts of Bitcoin. Soros has also invested around $18 million in Coinbase, a popular cryptocurrency exchange, and $17 million in Galaxy Digital Holdings, a cryptocurrency-focused financial services and investment management company.
Soros’ move into the cryptocurrency sector comes at a time when Bitcoin and other cryptocurrencies have been seeing a surge in value. Crypto markets have seen a significant recovery since the FTX drama that took place in late 2022. FTX, one of the largest cryptocurrency exchanges, filed for bankruptcy amid mounting financial losses and regulatory pressure. The news of FTX’s bankruptcy sent shockwaves through the crypto community, leading to a significant sell-off in the markets. However, despite the initial panic, the crypto markets have since recovered.
Crypto Recovery Is On
The price of Bitcoin has soared to new highs in recent months, driven by increased interest from institutional investors and companies like MicroStrategy and Tesla. Soros’ investments in MicroStrategy and other cryptocurrency-linked companies suggest that he sees potential in the digital asset space and is positioning his portfolio to benefit from this trend.
Other factors that have contributed to the crypto recovery include; the underlying fundamentals of cryptocurrencies, such as blockchain technology and decentralized finance, remain strong. Secondly, the broader adoption of cryptocurrencies has continued to grow. This has been driven by the increasing number of companies accepting cryptocurrencies as a form of payment and the development of new blockchain-based applications that have the potential to revolutionize various industries.
Thirdly, the regulatory environment around cryptocurrencies has improved. While there is still a degree of uncertainty around crypto regulation, there has been some progress in clarifying the legal status of digital assets. This has increased confidence among investors and reduced some of the risks associated with investing in cryptocurrencies.
Conclusion
Overall, Soros’ recent portfolio changes reflect his bullishness on the cryptocurrency sector and his concerns about the social media landscape. By selling his stakes in Twitter and Zoom, Soros may be signaling that he sees more potential in companies that are involved in the crypto space, which he believes could be the future of finance.
This article first appeared on Benzinga.com
Image Courtesy of Shutterstock
