The hedge fund Goldentree, a firm with $41 billion in assets under management (AUM) has reportedly added the leading crypto asset bitcoin to its balance sheet. Unnamed sources detail that the American asset management firm leveraged bitcoin to diversify from traditional debt investment strategies. The wealth management firm allegedly has been looking for staff that understands blockchain technology and it’s possible Goldentree is circling distressed businesses within the crypto industry.
Goldentree Asset Management Invests in Bitcoin: Report
A recent report stemming from the financial publication The Street, says the mega-hedge fund Goldentree has purchased bitcoin (BTC). The author of the report, Michael Bodly did not reveal the unknown source who explained that Goldentree invested in bitcoin. A source disclosed that executives at Goldentree are looking into employing staff that understands crypto solutions and blockchain tech.
Despite looking for help, the undisclosed source told the reporter that the fund was fluent with things like “trading crypto and making VC-style investments in blockchain companies.” It’s also been said that three Goldentree executives have invested in the venture capital group Borderless Capital. The report does not disclose how much Goldentree purchased, but it was said the hedge fund was looking for investment vehicles that are different from debt-based instruments.
“The New York-based firm has been adding bitcoin to its balance sheet as a diversifier for the broad mix of debt-focused strategies it has run for years, according to two sources with knowledge of the matter,” The Street journalist Bodly writes. “The sources were granted anonymity to discuss sensitive business dealings,” the author’s report adds.
Goldentree Could Be Circling for Distressed Tech Companies
The unidentified source means, as far as the alleged BTC on the company’s balance sheet is concerned, Goldentree won’t be included on the Bitcoin Treasuries list. As of July 31, 2021, 59 public and private firms hold bitcoin (BTC) on their balance sheets. Goldentree was founded 21 years ago by Steven Tananbaum, a well known American hedge fund manager. Bloomberg referred to Tananbaum as “one of Wall Street’s biggest investors in distressed debt” in 2018. Bitcoin (BTC) as an investment vehicle is quite the opposite of traditional debt-based strategies Goldentree typically leverages.
Goldentree’s investment strategy has allowed it to capture $41 billion AUM from things like distressed and leveraged loans, and emerging debt markets. There’s also a possibility that Tananbaum and Goldentree are circling the crypto and blockchain industry for distressed startups. In 2015, CNBC nicknamed Tananbaum a “vulture investor” that was circling indebted tech companies. Since The Street reported on Goldentree’s alleged bitcoin purchase, the hedge fund has neither confirmed nor denied the allegations.
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