Carl Icahn Considering $1.5 Billion in Crypto Investments


Billionaire investor Carl Icahn told Bloomberg TV this week that he may get into crypto in a “big way.” When pressed on what a big way might mean, he said he’s considering investing as much as $1.5 billion in crypto.

Icahn’s history of taking sizeable positions in companies and pushing for change has won him a reputation as an activist investor. Through his company, Icahn Enterprises, he’s changed the direction of a number of American companies.

So, why is he now looking at cryptocurrency?

One email a day could help you save thousands

Tips and tricks from the experts delivered straight to your inbox that could help you save thousands of dollars. Sign up now for free access to our Personal Finance Boot Camp.

By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time.
Please read our Privacy Statement and Terms & Conditions.

Icahn now believes crypto is here to stay

During the interview, Icahn expressed concerns about inflation and the amount of excess money around. He’s worried that a lot of investments today are fooling the public and believes a lot of companies and meme stocks are trading at “ridiculous prices.” But he said there may be something to cryptocurrencies.

READ:  How to Set up Google Alerts for Your Business

In terms of crypto, Icahn says his team is studying the industry, and he thinks it’s “here to stay in one form or another.” He doesn’t have his sights set on a specific coin yet but is looking at the industry as a whole.

The Ascent’s picks for the best online stock brokers

Find the best stock broker for you among these top picks. Whether you’re looking for a special sign-up offer, outstanding customer support, $0 commissions, intuitive mobile apps, or more, you’ll find a stock broker to fit your trading needs.

See the picks

Icahn’s thinking has clearly changed from three years ago when he said he definitely wouldn’t buy them. “I don’t like the cryptocurrencies only because, maybe I don’t understand them,” he said. At that point, he was worried about how they would be regulated and the number of scandals there had been.

In contrast, Icahn is now ready to look at ways Icahn Enterprises can get involved. He does, however, remain cautious, as he isn’t convinced that many of the cryptocurrencies currently on the market will survive.

What does this mean for cryptocurrencies?

Cryptocurrency prices have been rocked in recent weeks, beginning with Elon Musk’s tweet that Tesla would suspend Bitcoin purchases due to environmental concerns. Back in February, the announcement that Tesla had bought $1.5 billion in Bitcoin was one of the factors that drove the top digital currency’s price to an all-time high.

READ:  Didn't Get Your Stimulus Payments? You Can Now Use 'Free File' to Claim Them

One of the difficult things about investing in cryptocurrency is that news from billionaire investors can have an outsized impact on the market as a whole. However, while Icahn’s views are certainly positive news, he hasn’t taken the plunge yet.

News that he might invest is not enough to assuage concern caused by a crackdown in China and fears of increased regulation in the U.S.

As an investor, it is worth taking his caution to heart. With over 10,000 cryptocurrencies on the market today, many will fail. Indeed, according to Coinopsy (a site dedicated to tracking dead coins) over 2,000 digital currencies have failed since Bitcoin was launched in 2009.

There’s so much hype and so much new and untested technology, it can be hard to distinguish the good investments from the bad. And Icahn may be right that only a limited number of the coins we see today will survive.

Buying your first stocks: Do it the smart way

Once you’ve chosen one of our top-rated brokers, you need to make sure you’re buying the right stocks. We think there’s no better place to start than with Stock Advisor, the flagship stock-picking service of our company, The Motley Fool. You’ll get two new stock picks every month, plus 10 starter stocks and best buys now. Over the past 17 years, Stock Advisor’s average stock pick has seen a 581% return — more than 4x that of the S&P 500! (as of 8/18/2021). Learn more and get started today with a special new member discount.

READ:  Biden Says More Stimulus Is Coming After the Inauguration

Start investing

Most top cryptocurrency exchanges only list a limited number of coins, which they do vet to some degree. Even so, it’s important to research your investments carefully, as it’s your money on the line. Don’t buy just because a celebrity told you to or because you think it’s going to make short-term gains.

And if — and when — Icahn does go big on crypto, it will be worth paying attention to which coins he chooses to buy.


View more information: https://www.fool.com/the-ascent/buying-stocks/articles/carl-icahn-considering-15-billion-in-crypto-investments/

Articles in category: Media

Leave a Reply

Back to top button