Multimillionaire Club Invested in Bitcoin on the Eve of the U.S. Presidential Election

Members of Tiger 21, a club for high-net-worth individuals with assets of at least $100 million, invested in Bitcoin, silver, and gold-mining stocks as a hedge against a Biden victory in the U.S. presidential election. The story is reported by Bloomberg.

“Against the backdrop of near-zero rates on debt markets and the prevailing uncertainty, many are increasing their holdings of gold and Bitcoin,” said Avi Weintraub, president of The Weintraub Companies, a real estate firm, and head of the Miami chapter of Tiger 21.

He explained that members of the club prefer acquiring shares of gold-mining companies and ETFs, rather than physical gold.

According to Weintraub, investors who ignored Bitcoin eight months ago are now paying close attention to media coverage devoted to comparing gold with the first cryptocurrency.

“We don’t know where this topic is headed. It may be warranted, it may be madness, or something in between. So why not add a small portion [Bitcoin] to the portfolio? It’s, in a sense, insurance,” he explained.

In addition to evaluating investment opportunities, the group considered estate-planning aspects, as a Trump defeat and stronger Democrats in Congress could lead to tax reforms.

The Tiger 21 (The Investment Group for Enhanced Results in the 21st Century) was founded in 1999 as an educational network for wealthy investors. It counts more than 500 members, with assets under management totaling $50 billion.

Earlier this year, Nasdaq-listed MicroStrategy became the first public company, having invested part of its capital in Bitcoin. Later its CEO Mike Saylor said that the MicroStrategy team plans to store the purchased cryptocurrency for 100 years. He also predicted that in coming months the first cryptocurrency will be chosen by other private companies.

In October, the payments company Square, led by Jack Dorsey,announced a purchase of Bitcoin worth $50 million. Its example was followed by the asset manager Stone Ridge Holdings Group and the London Stock Exchange-listed fintech group Mode Global Holdings. 

According to Bitcoin Treasuries, the volume of investments by public companies in the first cryptocurrencysurpassed $10 billion.

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