Mexican billionaire Ricardo Salinas has made headlines by increasing the proportion of Bitcoin in his liquid portfolio to a substantial 80%, up from 70%. This strategic move comes at a time when many investors are captivated by the boom in artificial intelligence (AI) technologies, which Salinas openly criticizes as a “bubble.”
In a recent interview with CoinDesk, Salinas articulated his distaste for AI investments, asserting, “I would never buy the AI bubble.” Despite Bitcoin experiencing a downturn over the last eight months—from over $120,000 in October to around $60,000—he has ramped up his investment in the cryptocurrency. He emphasizes a value investing philosophy akin to that of Warren Buffett, distinguishing his strategy by declaring, “I don’t own stocks. I don’t own bonds,” and positioning Bitcoin as the cornerstone of his investment approach. The remainder of his portfolio is devoted to investments in gold and silver miners, reflecting his family’s mining legacy in Mexico.
Adding to the dialogue, Salinas indirectly acknowledged the AI sector through select Bitcoin mining firms that could leverage their data-center resources for AI computing. Currently, Bitcoin’s price has shown a modest gain of over 1%, although retail sentiment concerning the cryptocurrency has recently shifted to ‘neutral’ from ‘bullish.’
The comments from Salinas come amid a growing concern within the investment community that capital is being diverted from cryptocurrencies to AI companies and data-center investments. Michael Saylor has described the current bearish sentiment in Bitcoin as an “AI summer slump,” indicating a perceived rotation of capital away from crypto towards AI-linked stocks. Salinas’s outright dismissal of AI investments stands in stark contrast to this trend.
In addition to his cryptocurrency investments, Salinas voiced support for Strategy Inc’s Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), labeling it an excellent opportunity for those seeking dollar-denominated income. He defended Michael Saylor against allegations of running Strategy as a “Ponzi scheme,” asserting that such claims are based on a “profound ignorance” of the situation.
The preferred shares offer a relatively high dividend rate of approximately 11.5%, but they recently faced challenges, closing near a record low of $88—significantly lower than their $100 issuance price. Post this downtrend, Saylor called for “Bitcoin unity,” suggesting that the potential benefits of Bitcoin overshadow any ongoing arguments within the community.
Moreover, Salinas rejected criticisms from notable Bitcoin skeptics, including gold advocate Peter Schiff and entrepreneur Mark Cuban, who recently divested most of his Bitcoin holdings, asserting the asset had not served as an effective hedge during geopolitical conflicts.
On another front, Mike Novogratz, the CEO of Galaxy Digital, expressed caution regarding the cryptocurrency market, highlighting a lack of “energy” and “new buyers.” On a recent podcast appearance, Novogratz pointed out that Bitcoin is currently facing challenges due to declining enthusiasm following its prolonged slump. He urged long-term investors to remain optimistic about Bitcoin, noting its historical price cycles.
As of now, Bitcoin has declined over 26% in 2023, down nearly 50% from its all-time high. The evolving dynamics of the cryptocurrency and AI markets continue to attract attention from investors and analysts alike.
