Billionaire Ricardo Salinas has made headlines this week by declaring that he has increased Bitcoin’s (BTC) share in his liquid portfolio to an impressive 80%. In a conversation with CoinDesk, Salinas conveyed his disinterest in the burgeoning artificial intelligence (AI) fad, emphasizing his conviction that he would “never buy the AI bubble.” Over the past eight months, Bitcoin’s value has seen a decline, dropping from over $120,000 last October to around $60,000. Despite this downturn, Salinas has continued to bolster his Bitcoin investments, raising his allocation from a previously reported 70%.
Salinas likened his investment philosophy to that of famed investor Warren Buffett, albeit with a distinctive Bitcoin twist. “I don’t own stocks. I don’t own bonds,” he stated, positioning Bitcoin as the foundational element of his liquid portfolio. The remainder of his investments includes gold and silver mining, reflecting his family’s mining legacy in Mexico. He noted that his indirect exposure to the AI sector comes through select Bitcoin mining companies, which may pivot their data-center infrastructure towards AI computing in the future.
In the wake of Salinas’ remarks, Bitcoin saw a slight uptick of over 1% in the past 24 hours. However, retail sentiment on Stocktwits shifted from ‘bullish’ to ‘neutral’ as discussions surrounding the cryptocurrency remained at lower levels. This sentiment coincides with ongoing debate among investors about the potential diversion of capital from crypto markets to AI-focused companies and data-center investments. Prominent cryptocurrency advocate Michael Saylor has referred to Bitcoin’s current downturn as an “AI summer slump,” suggesting that investments are rotating out of crypto and into AI-linked equities. Salinas’ staunch rejection of the AI trend stands out as a counterpoint to this prevailing belief.
In addition to his Bitcoin comments, Salinas showed support for Strategy Inc’s (MSTR) Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), labeling it a “no-brainer” for those seeking dollar-denominated income. He went further by defending Saylor against allegations labeling Strategy a “Ponzi scheme,” arguing that such accusations exhibit “profound ignorance” regarding the situation. The preferred shares currently offer a competitive dividend rate of approximately 11.5%, marking them as among the highest-yielding options linked to the Bitcoin treasury ecosystem. Nonetheless, the endorsement comes at a challenging time for STRC, which recently touched a record low near $88—significantly below its $100 issuance value—leading the company to halt at-the-market sales of the preferred shares. In response to this, Saylor has called for “Bitcoin unity,” emphasizing the greater opportunity at stake over internal disputes.
Salinas also dismissed critiques from notable Bitcoin skeptics like Peter Schiff and Mark Cuban, the latter of whom has recently divested most of his Bitcoin holdings, claiming it had “failed as a war hedge” during geopolitical tensions involving the US and Iran. This action was perceived by Fundstrat’s Tom Lee as indicative of a broader trend of disillusioned crypto investors.
Adding to this conversation, Galaxy Digital (GLXY) CEO Mike Novogratz shared a more cautious perspective on the cryptocurrency market during his recent appearance on Anthony Scaramucci’s podcast. He characterized the current market climate as lacking “energy” and “new buyers,” a sentiment reflected in the waning enthusiasm following Bitcoin’s extended slump. Novogratz also pointed to the mounting pressures on Saylor regarding the world’s largest corporate Bitcoin treasury, noting that the pause on STRC limits Strategy’s capacity to augment their holdings. However, he encouraged long-term investors to remain optimistic about Bitcoin, suggesting that its historical four-year cycle could re-emerge next year to reignite demand. Despite ongoing challenges, Novogratz maintains a bullish outlook with a year-end price target of $100,000 for Bitcoin, even as he acknowledges that AI trends are currently “stealing crypto’s thunder.” Overall, Bitcoin has faced a decline of over 26% this year, nearly halving in value since its all-time high last year.
