Why Crypto Billionaire Mike Novogratz Bought Facebook Stock

Billionaire investor Mike Novogratz said he’s bought Facebook Inc. stock to benefit from crypto’s ascent and is also shorting the five-year Treasury as a hedge against policy makers pulling back monetary support.

“I’m short a lot of interest rates,” Novogratz, chief executive officer of Galaxy Digital Holdings Ltd., said Tuesday in a Bloomberg Television interview. “To me, being short the five-year part of the yield curve is a great hedge for any portfolio, crypto or non-crypto.”

Novogratz is a former partner at Goldman Sachs Group Inc. who went on to become a macro hedge fund trader at Fortress Investment Group and now runs a cryptocurrency merchant bank. He’s worth more than $5 billion, according to the Bloomberg Billionaires Index after a surge in the price of bitcoin, ether and other digital currencies.