Benzinga - Former Goldman Sachs (NYSE: GS) executive Raoul Pal shared a tip with Bitcoin (CRYPTO: BTC) investors last year to maximize their gains. Pal advised them to never use leverage on Bitcoin as it amplified their potential investment losses.
What Happened: In November 2022, Pal tweeted that owning Bitcoin, by all means, was a good idea. “It will probably work very well over 5 years+.”
However, he then went on to ask investors to never “use leverage” to own Bitcoin.
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Pal was responding to a Twitter thread by an anonymous user on how MicroStrategy (NASDAQ: MSTR) CEO Michael Saylor had started plowing the company’s cash into Bitcoin.
“The strategy of buying Bitcoin as a replacement of dollars for the company’s treasury is already questionable,” the user tweeted.
@kittysquiddyThe user pointed out that MicroStrategy took $2.2 billion in debt to buy more Bitcoin, which means “leverage of 14 times. It is reckless.”A thread on $MSTR aka Microstrategy.
This should really be parody but it isn’t.
Microstrategy (MSTR) is a US Tech company that provides business intelligence, mobile software and cloud-based services. It was founded by Michael Saylor in 1989.
— Element (@Elementcapl) November 13, 2022
When asked by another Twitter user “whether this time is as bad as times past"? Pal responded by saying, “No.”
MicroStrategy currently holds 140,000 Bitcoins.
Price Action: At the time of writing, BTC was trading at $30,011, up 5.99% in the last 24 hours, according to Benzinga Pro data.
This story was originally published on Nov. 14, 2022.
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© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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