Billionaire U.S. trader Stanley Druckenmiller, who was said to be shorting the dollar only weeks earlier, has been long on Bitcoin.
Druckenmiller said he holds Bitcoin on CNBC Monday, becoming the first high-profile “old school”, ultra-high-net-worth trader to publicize his involvement with the digital currency.
Long on Bitcoin
Although he claimed that his gold role was “many, many more times” greater than his allocation of Bitcoin, Druckenmiller expected that his Bitcoin to outperform gold.
“Frankly, the bitcoin bet would actually perform easier if the gold bet works, since it’s thinner, more illiquid and has a lot more beta.”
“It has a lot of interest to all millennials and the modern West Coast money as a store of value and, as you know, they have a lot of it.”
Druckenmiller has said he anticipates a fall in the US dollar over three or four years. A Bloomberg article only weeks earlier disclosed that Druckenmiller was betting against the US dollar.
“You’ve had a bunch of equities benefitting greatly from work from home,” Druckenmiller said. “A lot of money has rotated into them. They are overvalued.”
“But then you’ve got a whole other sector of the market that has struggled mightily because of Covid,” he said. “They’re selling at under-value relative to, say, a three-to-five-year outlook. So the rotation into that would seem entirely rational.”
A Storied Investment History
Stanley Druckenmiller is an American investor, philanthropist, and founder of hedge funds. He is the former president and chairman of Duquesne Capital, which he founded in 1981.
In August 2010, he closed the fund because he felt incapable of providing high returns to his investors. Duquesne Capital reported over $12 billion in value at the time of closure.
He handled capital for George Soros as the sole portfolio manager for the Quantum Fund from 1988 to 2000. In 2008, he is estimated to have earned $260 million.
Druckenmiller is a top-down trader who owns a long stock group, a short stock group, and uses leverage for derivatives and currency trading.
He held significant roles at Microsoft, Abbott Labs, Salesforce.com, Delta Airlines, and American Airlines in early 2019. He confirmed that he possessed both gold and bitcoin in November 2020.
Druckenmiller was a big backer of Republican Governor Chris Christie of New Jersey, supporting reducing expenditure on welfare services such as Social Security Druckenmiller.
In 2015, Druckenmiller donated to the presidential candidacies of Christie, Jeb Bush, and John Kasich a total of $300,000.
Druckenmiller stated in 2020, after the stock market collapse and ensuing rally over pre-crash peaks, that due to measures taken by the Federal Reserve, he expects inflation in the US economy.
He is also noted for his bid to buy the Pittsburg Steelers. Druckenmiller appeared as a possible bidder in the National Football League’s Pittsburgh Steelers franchise in July 2008.
The five sons of Steelers founder Art Rooney Sr. were trying to restructure the team’s ownership, and Druckenmiller was approached about purchasing the shares of some of the Rooney brothers by a member or representative of the Rooney family. Druckenmiller withdrew his offer to buy the squad on September 18.