Mike Novogratz, former hedge fund manager trader made an epic call a few years ago, “put a little money in Bitcoin…come back in a few years and it’s going to be worth a lot” which also earned him the title of cryptocurrency king. Mike
Novogratz is not currently on the Forbes World’s Billionaire list but that could change if cryptocurrency goes mainstream.
So Mike Novogratz is on the world’s top investors radar and worth tracking for crypto traders/investors.
“put a little money in Bitcoin…come back in a few years and it’s going to be worth a lot”
Here’s a rundown of Mike Novogratz latest moves.
December 22 Mike Novogratz announces that he is shelving plans to start a cryptocurrency hedge fund hedge.
“We didn’t like market conditions and we wanted to re-evaluate what we’re doing” Novogratz said Friday in a phone interview. “I look pretty smart pressing the pause button right now.”
Indeed, Mike Novogratz must have seen the regulations coming (as we forecasted).
Bitcoin’s price has collapsed by 80% from its all-time high of 19,501USD and year to date Bitcoin is down -21.86% (at the time of writing this piece).
How far can the world’s most popular cryptocurrency, Bitcoin fall?
The answer depends on who you ask, moreover the view is extreme amongst the world’s top investors.
“We didn’t like market conditions and we wanted to re-evaluate what we’re doing”
Hugely successful and famous value investor Warren Buffett has warned Bitcoin’s recent stellar rise is driven by pure fear of missing out (FOMO).
Warren Buffett reckons bitcoin will crash but in the same breath, he admits that he doesn’t understand Bitcoin.
Does Warren Buffett really know more and just being humble, a common characteristic amongst the world’s top investors?
Mike Novogratz (a trader) predicts that Bitcoin price could fall to 8,000 USD, which is its long-term support level and then rally to 50,000 USD by the end of this year.
So Mike Novogratz believes that Bitcoin’s price is in a short-term bear market but it is a long-term secular bull market. If the crypto king trades what he says then Mike Novogratz latest trading move would be to sort Bitcoin until support level 8,000 USD and then trade the other way, long Bitcoin until Bitcoin price reaches its next resistance price level around 50,000 USD. Mike Novogratz is probably playing these markets like a trader rather than a long-term investor.
About cryptocurrencies being in a bubble, Mike Novogratz said,
“Bubbles don’t end until the buyers are all in until there’s leverage and there’s no leverage in this system yet” and he added, “I think that’s what you wait for.”
So after shelving his hedge fund plan, Mike Novogratz latest move is to launch a merchant bank dedicated to cryptocurrencies and block-chain ventures with the aim of going public.
Mike Novogratz laid out a series of transactions in a statement Tuesday that would, if successful, raise $200 million and, through a holding company, list shares of his Galaxy Digital LP on Canada’s TSX Venture Exchange.
Galaxy will offer a “best-in-class, full service, institutional-quality merchant banking business in the cryptocurrency and blockchain space,” said Mike Novogratz.
“Bubbles don’t end until the buyers are all in until there’s leverage and there’s no leverage in this system yet” – Mike Novogratz
Galaxy Digital will have four main functions; trading, principal investing, asset management and advisory work. Put another way, Mike Novogratz’s latest move to be the Goldman Sachs of cryptocurrency and blockchain technology.
Put aside the speculative frenzy of cryptocurrencies (which functions on blockchain technology) Mike Novogratz’s latest move is to tailor an investment bank for cryptos and blockchain technology which could also point to a long-term future in the latest and digital technology.
So the blockchain revolution is coming and it is not just in currencies. Blockchain technology will increasingly digitalize the supply chain.
Global shipping giant Maersk wants to link the shipping world in a blockchain.
With access to a shared, trusted record of transactions, Maersk executives say, the world’s shipping companies would save money and be able to better compete on enhanced services. The company has developed a blockchain using IBM’s Hyperledger Fabric open-source software to do just that.
IBM and Maersk stocks are both rising on the announcement.
Blockchain technology is likely to democratize the entire real estate industry and reduce the cost of buying and selling real estate that is the good news.
The blockchain revolution is coming and it is not just in currencies. Blockchain technology will increasingly digitalize the supply chain
“Today we can do all of those things with both websites and e-mails … but in a blockchain world, assuming that confidentiality is cleared, that property would have a property identity, so the previous people who owned the property, any of the inspections or records, landlord information, would be fully disclosed,” explains Ms. Botting.
“In theory, you’re not involving a lot of paperwork and you’re reducing the number of people involved in the process.”
“We do a lot of business in Germany and when we close, say, a $50-million deal in Germany, we’ll spend half a million dollars or more on the notary charges,” she says, adding that similar transactions in Canada “would be a $25 charge.”
So blockchain has the potential to change the world. Moreover, it is those companies that have the vision and are able to apply the new technologies who will benefit going forward. But like all new and potentially disruptive technologies, there will be winners and losers.
Mike Novogratz latest move to become the world first crypto merchant bank could be the oil that lubricates the wheels of the coming blockchain revolution.
Dan Loeb targets Sony. Dan Loeb is an activist investor and founder of Third Point, which oversees about $14.5 billion in assets.
Last year the activist investor viewed Campbell soup as a bargain when Third point reported that the soup maker could fetch a takeover value of $52 to $58 per share.
A year later and the activist investor Dan Loeb targets Sony
Dan Loeb's activist hedge fund Third Point is raising an investment vehicle to generate between $500 million and $1 billion so it can continue to buy Sony shares, according to a recent report in Reuters.