Successful $700 million investment! Chairman of asset management company Ruffer says: Bitcoin is a unique beast.

Investing $700 million in Bitcoin pays off, says Chairman of UK asset management company Ruffer Investment, who believes Bitcoin is a unique beast, an emerging store of value that combines the advantages of technology and gold.

$700 Million Investment

According to previous reports, the UK asset management company, Ruffer Investment Company, disclosed to shareholders in December 2020 that 2.5% of its asset allocation had been used to invest in Bitcoin. At that time, information indicated that the "Ruffer Multi-Strategies Fund," which manages a total of $6.2 billion in assets, was used for the Bitcoin investment.

However, a spokesperson for the company later stated in a letter to The Block that:

"The investment in Bitcoin is primarily a risk hedge for the portfolio. It diversifies Ruffer's portfolio investments in gold and inflation-linked bonds, and hedges certain risks we see in fragile currency systems and distorted financial markets. Ruffer's current investment in Bitcoin is approximately £550 million (about $744 million), representing around 2.7% of the company's managed assets."

In other words, the amount the company invested in Bitcoin is not the previously speculated $15 million, but $744 million, far surpassing investments in Bitcoin by companies like Galaxy Digital, Square, Stone Ridge, and others.

A Unique Beast

On the other hand, Ruffer Asset Management also recently released an article titled "Q4 2020 Investment Review," in which Chairman Jonathan Ruffer reviewed past investment decisions and explained the motivation behind the $744 million investment in Bitcoin in the fourth quarter of last year. The chairman acknowledged the value of Bitcoin in the article, claiming it is challenging the market position of gold and describing it as a "unique beast."

"We have been observing for a long time, and our judgment is that it is a unique beast, an emerging store of value, combining some advantages of technology and gold. Yes, it seems to be an absurd asset, but it absolutely makes sense for how we view the world."

It is important to note that the $744 million investment is not entirely in the form of Bitcoin; part of the funds were invested in stocks of companies such as MicroStrategy and Galaxy Digital, indirectly investing in Bitcoin. Ruffer's documents show that they hold stocks worth approximately $1.55 million of MicroStrategy and $2.95 million of Galaxy Digital.