Popular finance news and information site The Motley Fool has become the latest firm to allocate capital to Bitcoin. Of note, the company is a private firm, unlike other institutional Bitcoin players such as MicroStrategy.
The Motley Fool added that it believes Bitcoin will perform well over the long run, noting that it normally tells investors to hold assets for five years or more:
We generally recommend investors aim to own at least 30 stocks and hold them for a minimum of 5 years. And we think Bitcoin can play a role within a diversified portfolio built with a focus on the long term.
The firm added that it would be buying into bitcoin directly, as opposed to buying funds that represent exposure to the digital asset:
The Motley Fool was founded in 1993, has 500 employees, and raised dozens of millions of dollars during the Dotcom Boom, according to Pitchbook.
While $5 million is not a particularly large amount when compared to the scale of MicroStrategy, which most recently announced it was raising $900 million to add to its $3.5 billion of existing bitcoin, The Motley Fool does have the eyes of many online.
The Twitter thread announcing this move has garnered over 20,000 likes and 4,500 retweets as of this article’s writing.
Why The Motley Fool Is Buying Bitcoin
Secondly, it believes that Bitcoin will act as a viable hedge against inflation. This is a similar sentiment to that shared by prominent Wall Street investors such as Wall Street billionaire Paul Tudor Jones. Jones said in a note published last May that he thinks Bitcoin will be the “fastest horse” in the race against inflation.
While the firm did not give a firm price target, the heuristic of a “10x” was mentioned:
“In our 10X real-money portfolio, we are recommending and buying Bitcoin. It will be a core holding in our 10X portfolio. There are 39 other stocks we believe are on a path that could potentially lead to 10x returns at some point over the next 15 years. We believe Bitcoin could deliver those returns as well.”