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Wall Street legend bets on cryptocurrency and Bitcoin

  • Henry Kravis, the co-founder of the private equity firm KKR & Co., is investing in a cryptocurrency fund provided by ParaFi Capital.
  • Kravis joins fellow billionaire investors Peter Thiel, Alan Howard and Louis Bacon, who have all invested in cryptocurrency and blockchain technology.

As reported by Bloomberg, Henry Kravis, the billionaire investor and co-founder of the private equity firm KKR & Co., is investing in a cryptocurrency fund provided by ParaFi Capital. Ben Forman, a former employee and ParaFi Capital founder, said that cryptocurrencies offer unprecedented upside for investors because of the risk and volatility involved:

“In the high-yield markets, I used to fight to outperform the index by tens of basis points. Crypto, on the other hand, due to its nascency, offers a tremendous amount of alpha to active managers.’’

Following this move, Kravis joined fellow billionaire investors Peter Thiel, Alan Howard and Louis Bacon, who have all invested in cryptocurrency and blockchain technology. A spokeswoman for Kravis declined to comment. 

Forman left KKR & Co., in 2018 to focus on blockchain and cryptocurrency full time:

“While I toyed with the idea of pursuing blockchain investing within KKR, it was clear to me that the firm did not provide the optimal format to do so. Instead of pursuing crypto at KKR, I wanted to build the KKR of crypto.”

ParaFi’s portfolio includes leading US crypto exchange Coinbase, the Ethereum-based stablecoin project MakerDAO and the transportation, logistics and financial services app Grab.

Author

Rajarshi Mitra

Rajarshi Mitra

Independent Analyst

Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.

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