Crypto FOMO: Billionaires Joining the Bitcoin Craze as Bubble Bursts

What led billionaire investors like George Soros, Mark Cuban, and others to change their views on Bitcoin and enter the cryptocurrency market?

Table of Contents
Soros’s Transformation from Skeptic to Investor
Mark Cuban: From Bananas to Believer in Blockchain
Warren Buffett: Shifting from Skepticism to Strategic Investments
Capitalists Always Follow the Money

George Soros, the Hungarian-American billionaire and renowned investor, is famous for his astute financial insights and bold investment moves.
In January 2018, Soros made headlines at the World Economic Forum in Davos when he referred to Bitcoin as a “bubble.” He compared the cryptocurrency craze to the tulip mania in the Netherlands during the 1600s.
However, in a surprising turn of events, Soros Fund Management announced in October 2021 that it had entered the crypto world by acquiring some Bitcoin.
The fund’s interest in crypto didn’t stop there. During the first quarter of 2024, Soros Fund Management increased its stake in MicroStrategy, a company heavily invested in Bitcoin, with holdings worth over $135 million.
How has Soros’s perspective on crypto evolved over the years, and which other billionaires have succumbed to the fear of missing out (FOMO) on crypto? Let’s delve deeper into the details to find out.

Soros’s Transformation from Skeptic to Investor
When George Soros spoke at Davos in 2018, he was unequivocal about his skepticism towards Bitcoin (BTC), describing it as a classic bubble. His primary concern was its volatility, which he believed rendered it unsuitable as a currency.
“Bitcoin is not a currency,” Soros stated, “because a currency is meant to be a stable store of value, and a currency that can fluctuate 25% in a day cannot be used, for example, to pay wages. Wages could drop by 25% in a day.”
Despite his reservations about Bitcoin, Soros remained optimistic about the underlying blockchain technology. He recognized its potential for good, particularly in helping migrants safeguard their money.
Fast forward to October 2021, Soros Fund Management revealed its ownership of some Bitcoin. CEO and Chief Investment Officer Dawn Fitzpatrick stated at a Bloomberg event that the fund held “some coins… but not a lot.”
By December 2022, Soros Fund Management had deepened its involvement in the crypto sector. The fund purchased $39.6 million worth of convertible debentures in Marathon Digital Holdings, a prominent crypto mining company.
Convertible debentures are long-term debt instruments that can be converted into stock, illustrating Soros’s strategic approach to gaining exposure to the crypto market.
In addition, the fund acquired significant positions in MicroStrategy. Soros’s 13F filings with the SEC disclosed both call and put options on MicroStrategy shares, as well as nearly $200 million in MicroStrategy preferred shares.
And now, as of May 2024, Soros Fund Management’s interest in MicroStrategy has grown even further, with holdings valued at over $135 million.
This investment is noteworthy because MicroStrategy has been a major player in the Bitcoin market, holding over 214,000 BTC, thanks to its co-founder Michael Saylor’s aggressive Bitcoin acquisition strategy.

Mark Cuban: From Bananas to Believer in Blockchain
Mark Cuban, the billionaire owner of the Dallas Mavericks, has had quite the journey with cryptocurrencies.
In 2019, during a YouTube Q&A session, Cuban famously stated that he would “rather have bananas than Bitcoin,” comically expressing his initial skepticism.
He compared Bitcoin to baseball cards and comic books, emphasizing that, in his view, these items had no intrinsic value.
Despite his initial doubts, Cuban’s stance on crypto began to evolve. By 2021, he had become a vocal supporter of decentralized finance (DeFi) and non-fungible tokens (NFTs).
He recognized the potential of smart contracts and decentralized applications (dApps) to revolutionize industries beyond finance. Consequently, his investment portfolio expanded to include projects like Polygon (MATIC), a layer 2 scaling solution for Ethereum (ETH).
Cuban’s Dallas Mavericks even started accepting Bitcoin and other cryptocurrencies for tickets and merchandise, solidifying his commitment to the crypto space.
Cuban’s dedication to the crypto industry is further evident in his investment strategy. He revealed that 80% of his non-“Shark Tank” investments are focused on crypto and blockchain technology.
He sees the decentralization aspect of digital assets as the primary attraction, with a particular interest in decentralized autonomous organizations (DAOs).
DAOs operate without a central authority, relying on token holders to make decisions, a democratic approach that appeals to Cuban.
Today, Mark Cuban stands as one of the most prominent billionaire advocates for blockchain technology. His journey from preferring bananas over Bitcoin to heavily investing in blockchain projects is a tale worth sharing.

Warren Buffett: Shifting from Skepticism to Strategic Investments
Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, has always been known for his critical view of cryptocurrencies. In 2018, he famously referred to Bitcoin as “rat poison squared,” expressing deep doubts about its value and long-term sustainability.
Buffett prefers investments in companies with tangible assets and steady cash flows, making the volatile nature of cryptocurrencies unattractive to him.
However, despite his strong words, Buffett’s actions reveal a more nuanced story. In late 2021, Berkshire Hathaway made a surprising move by investing $1 billion in Nubank, a Brazilian digital bank that is crypto-friendly.
According to a 13F filing with the SEC, Berkshire bought 107.1 million shares of Nu Holdings at an average price of $9.38 per share.
This significant investment was not Buffett’s first encounter with Nubank. In June 2021, Berkshire Hathaway had already injected $500 million into Nubank during a Series G funding round extension. This round valued Nubank at $30 billion.
In December 2021, when Nubank went public, Berkshire Hathaway purchased another 30 million shares for $250 million, causing Nubank’s value to skyrocket to $41.5 billion.
What does this mean? Buffett’s investments in Nubank suggest a cautious yet strategic interest in the fintech and crypto space. While he remains cautious about direct investments in crypto, his actions indicate a gradual adaptation to the changing environment.

Capitalists Always Follow the Money
Money speaks volumes, particularly in the world of finance, where it holds immense power. The lure of profits can convert even the staunchest skeptics into enthusiastic supporters and occasionally make fervent believers become cautious critics.
Goldman Sachs is a prime example. In 2018, they abandoned their plans to launch a crypto trading desk due to regulatory uncertainty and lack of institutional interest.
However, by 2021, as Bitcoin surged and institutional demand grew, Goldman Sachs relaunched its crypto trading desk, offering Bitcoin futures and non-deliverable forwards to its clients.
At the Consensus 2024 conference hosted by CoinDesk, Goldman Sachs even celebrated the success of new spot Bitcoin ETFs.
Matthew McDermott, the investment bank’s global head of digital assets, hailed the SEC’s approval of spot BTC ETFs as a “significant psychological turning point” and praised their “astounding success.”
Ray Dalio, the founder of Bridgewater Associates, was another notable skeptic. In September 2017, he initially criticized Bitcoin, calling it a “bubble” and stating that it was neither a good store of value nor a medium of exchange.
However, by 2021, Dalio disclosed that he owned some Bitcoin and described it as “one hell of an invention,” acknowledging its potential as a hedge against inflation and currency devaluation.
But why are these capitalists so eager to embrace this new world? The answer lies in diversification and hedging.
With inflation rates reaching multi-decade highs and traditional assets underperforming, digital assets offer an appealing hedge against economic uncertainties.
The future of finance is being shaped by code and blockchain, and those willing to dance to this new tune will lead the way.