BlockTower Capital Bets on Bitcoin, loses $1 million

30 Dec, 2018 | Updated: 30 Dec, 2018
by Will Heasman
Bitcoin
BlockTower Capital Bets on Bitcoin, loses $1 million

Last year, the cryptoasset investment firm made a bold bet that Bitcoin (BTC) would be worth more than $50,000 by the end of 2018, needless to say, the company lost its bet...

The one-million-dollar bet was made by the firm's co-founder, Ari Paul. Business Insider reports that the win would have given BlockTower the call option to buy up to 275 BTC at $50,000 a piece any time before December 28th, 2018.

The bet was made back during Bitcoin’s meteoric rise in December 2017. An interview with CNBC, Paul explained the bet, known as a call option, stating that, “ If Bitcoin settles anywhere below 50,000, [the option] will expire worthless, But if Bitcoin goes to say 100,000 it pays thirty to one” adding that he was willing to “risk a little to win a lot”.

Unfortunately for Paul, BTC settled well below $50,000 currently sitting at a price of $3,895.

Interestingly, earlier this month Morgan Creek founder Anthony Pompliano, made a similarly bullish bet on the entire crypto industry, pitting 1 million on the line that that digital assets will outperform the S&P 500 over the next 10 years.

Dubbed, ‘Buffet Bet 2.0’, this was a nod to Warren Buffets bet - beginning in 2008 - which saw the billionaire investor bet against various hedge funds in favor of the S&P 500 Index, a bet which Buffet won earlier this year.

No one took Pompilano up on the bet, leaving him speculate that vocal proponents opposed to crypto couldn’t put their money where their mouth is:

Read more: 'No one took us up on our $1 million bet' says Anthony PomplianoCrypto hedge fund BlockTower Capital continues to grow despite bear market

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