SkyBridge Capital co-founder believes that the retail investor-led stock surge for GameStop is a positive sign for Bitcoin success.
In an interview with Bitcoin Scaramucci said that the impact of small retail trading groups showed the power of decentralized finance which, of course, is the concept that underpins Bitcoin.
On Tuesday the stock of video gaming firm GameStop jumped 92.7% thanks to a volatile trading session driven largely by a campaign from members of a Reddit forum. Even Elon Musk got involved as following his tweet of “Gamestonk!!” shares rose by 50% and is now worth $10 billion and classified as a large-cap stock.
“The activity in GameStop is more proof of concept that Bitcoin is going to work,” Scaramucci said. “How are you going to beat that decentralized crowd? That to me is more affirmation about decentralized finance.”
Scaramucci also noted his belief that money management is being democratized through smartphones and low-cost online trading after previously being perceived as limited to a concentrated group of highly paid advisors.
GameStop Stock Surges
Overall, GameStop’s stock has risen around 600% over the last 10 trading days and Reddit traders have feasted after their online posts urged others to join the trade. This caused short sellers to lose $5 billion trading against the stock this year, a record according to data from S3 Partners.
There was also a report that a US Securities regulator had suggested something “systematically wrong” with the options trading surrounding GameStop’s stock.
But for Scaramucci this was all about a new age in investing. “It’s the age of the micro investor and you better take it seriously – otherwise you’ll get taken to the cleaners.”
SkyBridge has an exposure to Bitcoin of about $385 million, according to Bloomberg and the firm’s Bitcoin-focused fund, SkyBridge Bitcoin Fund, now has about $60 million, according to Scaramucci himself.