Mexican Billionaire Bets Big on Bitcoin

Mexican billionaire Ricardo Salinas has revealed that a significant portion of his investment portfolio is allocated to Bitcoin-related assets. In an interview with Bloomberg, Salinas disclosed that 70% of his portfolio is invested in Bitcoin and other cryptocurrencies, while the remaining 30% is allocated to gold and gold mining company stocks.

Salinas' investment strategy is a departure from traditional asset allocation, reflecting his bullish stance on the cryptocurrency market. His decision to allocate a substantial portion of his portfolio to Bitcoin comes amidst a backdrop of increasing institutional interest in cryptocurrencies, as well as growing regulatory acceptance and adoption.

In addition to his cryptocurrency investments, Salinas is also engaged in a legal battle with the Mexican government over a tax dispute. The dispute, which involves a 6.3 billion peso (about $300 million) claim, is ongoing and has not yet been resolved. Despite this, Salinas remains focused on his business interests and has plans to privatize his company, Grupo Elektra SAB, as early as May.

Privatizing Elektra would allow Salinas to operate the business independently and free from public market restrictions. The move comes after a tumultuous period for the company, which saw its stock price plummet by 70% following a trading suspension in November 2023. The suspension was implemented to prevent the sale of Salinas' pledged loan shares, which led to a significant reduction in his net worth.

Post-privatization, Salinas plans to restructure Elektra's various business segments and explore partnerships as an alternative to debt or equity financing. This strategic shift reflects his commitment to diversifying his business interests and adapting to changing market conditions.

Salinas' investment in Bitcoin and other cryptocurrencies is a testament to his belief in the long-term potential of the digital asset class. As the cryptocurrency market continues to evolve and gain wider acceptance, investors like Salinas are positioning themselves to capitalize on its growth and potential for disruption.