On the Master Investor podcast, Dalio described the allocation as offering the “best return-to-risk ratio” amid what he called a looming economic crisis. While Dalio admitted to holding a small amount of Bitcoin, he still favors gold, though he acknowledged that both assets have outperformed in recent months. Meanwhile, Michael Saylor’s firm, Strategy, paused Bitcoin purchases for the second time in July, holding at 607,770 BTC. Despite the pause, the company is still very much committed to its BTC strategy and recently upsized a fundraising round to $2.52 billion to support future buys.
Ray Dalio Backs 15% Bitcoin, Gold Allocation
American billionaire and Bridgewater Associates founder Ray Dalio once again weighed in on the ongoing economic crisis in the United States, and urged investors to consider allocating a large portion of their portfolios—around 15%—to either Bitcoin or gold.
On the Master Investor podcast, Dalio pointed out that such an allocation will offer the “best return-to-risk ratio” in the current environment, shaped by America’s soaring national debt and the ongoing devaluation of its currency. While Dalio admitted he personally holds “some Bitcoin, but not much,” he did suggest a clear preference for gold, though he left the exact split between the two assets up to individual investors. His latest suggestion is a stark shift from his earlier recommendation in January of 2022, when he advised just a 1% to 2% Bitcoin allocation.
Dalio’s warning was made amid fresh concerns about the fiscal health of the US government, which is grappling with a record $36.7 trillion in national debt. He said that the Treasury is expected to issue another $12 trillion in securities over the coming year just to service this debt.
Supporting his concerns, a recent US Treasury report projected $1 trillion in new borrowing for the third quarter of 2025—$453 billion more than previously estimated—due to weaker cash flows and declining reserves. Another $590 billion in borrowing is anticipated for Q4, which means that there is an intensifying reliance on debt to fund federal expenditures.
Dalio also warned that other Western economies, like the United Kingdom, are facing a similar “debt doom loop,” and he argued that currencies in these regions are likely to continue underperforming against hard assets like Bitcoin and gold. Despite recognizing Bitcoin’s value as an “effective diversifier,” Dalio is still somewhat skeptical about its viability as a reserve currency. He pointed out that Bitcoin’s lack of privacy and the transparency of its blockchain make it unlikely that central banks will adopt it for official monetary use, especially considering the risk of potential vulnerabilities in its code.
Still, both Bitcoin and gold have shown strong performance despite growing economic uncertainty. Bitcoin is currently trading at around $118,344, which is approximately 4% below its July 14 all-time high of $123,230. Gold also posted multiple record highs in recent months.
BTC price action over the past month (Source: CoinMarletCap)
Strategy Pauses Bitcoin Buys Again
One of the companies that is notorious for allocating money towards buying Bitcoin surprisingly did not purchase any over the past week. Michael Saylor’s Strategy, which is the largest public holder of Bitcoin, reported no new BTC purchases last week, despite impressive market activity that saw Bitcoin’s price climb from around $118,000 to over $119,000.
According to a US Securities and Exchange Commission (SEC) filing that was released Monday, the firm’s Bitcoin holdings stayed at 607,770 BTC. This was the second time in July that Strategy did not buy any Bitcoin, following a similar pause in the first week of the month.
Strategy Bitcoin purchase update (Source: SEC)
The slowdown reflects an overall deceleration in Strategy’s Bitcoin accumulation strategy. In July, the company reported only two purchases: 4,225 BTC on July 14 and 6,220 BTC on July 21, totaling 10,445 BTC. This is a 39% decline compared to the 17,075 BTC that was acquired in June.
The firm’s buying pace was even more aggressive earlier in the year, with 26,695 BTC purchased in May and 25,370 BTC in April. Apart from July, the only other week Strategy skipped a Bitcoin purchase in recent months was the first week of April.
The pause in buying happened alongside Strategy’s decision to expand its fundraising efforts. On Friday, the company upsized its Series A perpetual stretch preferred stock (STRC) offering from $500 million to $2.521 billion. The stock was priced at $90, with the transaction expected to settle on Tuesday, pending customary closing conditions. This new equity raise follows a similar pattern to earlier Strategy offerings, like the STRK program, and is intended to provide more capital for future Bitcoin acquisitions.
Despite the buying pause, Strategy is still very committed to its aggressive Bitcoin strategy. Co-founder Michael Saylor recently posted on X referring to the STRC as one of four key instruments in what he described as the company’s “Bitcoin defense department.”
