“For us everything gets cheaper… for us everything is on sale.”
So said Ross Stevens, the Founder and CEO of Stone Ridge Asset Management, in revealing their reserves are now in bitcoin.
“Our liquid reserves are in bitcoin” he said while talking to Michael Saylor during Microstrategy’s bitcoin conference.
“Our team asked: what do we have to believe to be true to move reserves from fiat to bitcoin?” – Stevens said.
“If allowed to focus on only point to point, the only thing we have to believe is whether in the next 10 to 20 years the dollar will depreciate relative to bitcoin.
We have a high degree of confidence that the dollar will depreciate against bitcoin in the long term.”
Stevens did not reveal how much they hold in bitcoin, but Stone Ridge partners have been buying the asset for years, eventually leading to the formation of NYDIG.
“So what’s going on?” – he asked. “We’re conservative, institutional, professional risk managers. It’s what we do for a living and it’s why investors, including most conservative investors in the world, have entrusted us with $20 billion in our non-bitcoin businesses.”
His answer was simple. “To us, conservative us, bitcoin is de-risked.” The chances of bitcoin going to zero are the same as Christianity going to zero, he said.
“My partners and I bought more bitcoin in 2020 than in 2013-2019 combined and as our fiat businesses continue to inflate and accelerate, which they are, I expect we’ll buy more bitcoin in the next two years than in the past 8,” he said.
Stone Ridge is an investment manager with about $20 billion in assets under management. In 2015 they began designing a full vertically integrated bitcoin service which only started taking off last year.
“Credit creation continues to explode, real rates on risky items can go negative,” he said.
Thus, whether to invest some of the company reserves in bitcoin is “the most important decision every CEO makes in the next ten years.”
Making this the latest big company to hold bitcoin alongside their cash reserves as CEOs try and hedge monetary devaluation which may accelerate with the upcoming $1.9 trillion stimulus.