GameStop is back in the headlines, but this time, it is not a manner of memes. The retailer collects $ 1.75 billion and possible use of these funds? Buy bitcoin.
This is the kind of move that could have delighted the market a year ago. But according to the CEO of Galaxy Digital, Mike Novogratz, the strategy is to lose its radiance.
“You see a whole new range of … Banque Company plays. I think it probably becomes a little over-typical. Novogratz said in a recent Fox commercial interview, referring to companies copying the Bitcoin approach to Michael Saylor.
It is a sharp socket to someone who has long defended Bitcoin and that he landed at a time when institutional interest is increasing clear again.
Understand his point of view.
Debt + bitcoin = risk?
Novogratz’s concern is the growing number of public companies to continue exposure to bitcoin without considering the risk profile.
Several of these companies, including Gamesop, finance their strategies through increases in massive debts. This increases eyebrows among market observers, in particular those who remember what betting overflows are like in a slowdown.
The concern does not concern Bitcoin itself, but on the way it is acquired. In short: it is not because Saylor made it work that everyone will do it.
Bitcoin thrives when confidence fails
If you are wondering if Novogratz has become a lowering, the answer is no – not even close. His recent tweet cuts directly for why he still considers Bitcoin as essential.
“We are in a lowering market in a trust across the country and in the world!” He posted on June 10. “This is the foundation of the cryptography rally.”
He underlined 2008, when Bitcoin emerged for the first time from the wreckage of the global financial crisis. According to Novogratz, little has changed, except that the issues are higher. “Unfortunately, the world has not become [trust] back,” He added. His advice to investors was “Stay a long crypto.”
BTC Prix Perspectives: It’s all about Washington
Novogratz has also weighed on what could drop the bitcoin from here and that has everything to do with American fiscal policy.
“We had a populist government on the left, and now we have a populist government on the right. They like to spend money “,” He said. In his opinion, this defines Bitcoin for a “really nice” price trajectory.
He did not give a specific target for the price of Bitcoin this time and left it open. “Once it’s okay, you don’t know where it will stop.”
But beyond price action, Novogratz is optimistic about something even greater – structural change in the American regulatory climate. He thinks that the next 24 months will in no way look like the last, with trends such as token actions and fixed income on the point of remodel the way in which institutions interact with space.
Always optimistic, but not blind
To be clear, Novogratz does not call companies to avoid Bitcoin. What he says is more nuanced; The fact that the purchase of BTC is part of a thoughtful strategy, not a movement of movement.
Irony is difficult to miss: as traditional institutions are more interested in the crypto, some more recent actors adopt the type of behavior of the herd that the industry has been built to go beyond.
However, Novogratz remains one of the most noisy voices that push responsible growth.
