June 23, 2021

Ray Dalio’s CFO Ditches Bridgewater For Bitcoin Biz

3 min read

John Dalby has actually been named the brand-new CFO of institutional Bitcoin company NYDIG. The C-level executive comes from Ray Dalio’s Bridgewater Associates, and is a rather unexpected relocation thinking about the company’s stance on crypto.

The pivot for the leading financing officer not just represents a world of modification for his career, however could be an indication of additional acceptance of Bitcoin and other cryptocurrencies. Here’s more on who John Dalby is, and what this could suggest for the market.

John Dalby: From Ray Dalio’s Bridgewater To Bitcoin

John Dalby has actually invested simply over two years as the chief monetary officer for the world’s largest hedge fund, led by economist Ray Dalio. Prior to his time at Bridgewater, Dalby worked as CFO and COO at D. E. Shaw Renewables Investments, and before that worked at UBS Americas as the CFO.

His newest venture will be joining quickly growing Bitcoin firm NYDIG according to a press release dispersed today. The modification is noteworthy offered Ray Dalio’s public hesitation and apprehension around cryptocurrencies. Plainly, that’s not the mindset of everyone within the firm.

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Notably, a CFO is responsible for how cash is managed in a corporation, which is why Dalby ditching Dalio for a Bitcoin firm is a big deal. This could be deemed a sign that even CFOs of the greatest and best ought to turn their attention towards BTC.

This situation likewise works counter to a recent claim that CFOs weren’t interested in crypto. The claim originates from Jerry Klein, handling director of Treasury Partners, a company that handles portfolios for various companies.

“I’ve been dealing with CFOs and treasurers for 25 years and evaluated hundreds of investment policies,” states Klein. “Virtually all stress security and liquidity as the leading concern. Extremely few business will accept even modest risk with corporate cash.”

bitcoin market cap

 Plenty of liquidity at$1 trillion and climbing|Source: CRYPTOCAP-BTC on TradingView.com

Liquidity in Bitcoin is less of a problem nowadays with the asset’s market cap now more than $1 trillion. Even Tesla squandered a part of their BTC and the marketplace made it through another day.

“I don’t see Bitcoin being widely embraced as a financial investment vehicle for corporate cash,” Klein continued. “Not one of our clients has expressed interest in Bitcoin.”

Water Under The Bridge As Crypto Revenues Change CFO Minds

However CFOs may soon start to take more notification after a relocation like this, and after seeing the income boost of business like MicroStrategy, Tesla, and Square Inc. Even brand names that are connected with Bitcoin like Coinbase have actually seen profits increase due to growing worldwide interest.

Dalby is not just defecting Bridgewater, he’s defecting against traditional financial concepts, and welcoming the blockchain transformation produced by Bitcoin.

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Perhaps now it is also time not simply for CFOs to take note, but for Dalio and Bridgewater to pay attention also.

Included image iStockPhoto, Charts from TradingView.com