Real Vision, an innovative financial media company headed by Raoul Pal, has reportedly invested of its cash holdings in Bitcoin.
Real Vision was co-founded in September 2014 by Raoul Pal, Damian Horner, Grant Williams, and Remi Tetot.
According to an article published on Thursday (December 3) by Tim Copeland for Decrypt, Real Vision feels quite comfortable keeping 10% of its treasury reserves in Bitcoin.
Pal told Decrypt:
“We think it’s a good way to hold excess cash. It’s not like I haven’t done the work on it, I’ve been involved in this space since 2012.”
Pal says that Real Vision acknowledges that the price of Bitcoin could halve but also recognizes that it could in future be 10X of what it is today:
“It’s only 10%. What’s the worst that could happen? It goes down 50% and we lose 5% of our treasury. Well we’re a subscription-based business; we generate cash, so should be fine. But if it goes up 10X, it makes a decent difference.”
Pal says that the reason so far only a few major companies are using Bitcoin as a treasury reserve asset is that the corporate treasurer cannot do without having sufficient evidence that Bitcoin is a good diversification asset for such a purpose:
“He needs some piece of paper written by an investment bank or somebody with credibility that says this is a really good diversification asset that adds overall value to your portfolio. The moment that kind of research comes out—and there is some of it coming out—that will completely shift the game… Talking cyber hornets is not going to get a pension fund to buy it.”
As for Pal’s personal investment portfolio, on November 30, he revealed that his liquid net worth is almost fully invested in crypto:
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.