Equity, Crypto Markets At All-Time Highs But It's Not All 'Green' Lights, Says Palihapitiya As He Sells 15% Of SoFi Stake

Social Capital CEO Chamath Palihapitiya sold 15% of his company’s position in SoFi Technologies SOFI this week to “build cash reserves” and “fund several new investments.”

What Happened: Palihapitiya said on Twitter on Thursday that, while markets have been on a tear and segments ranging from equities, cryptocurrencies, art, and “almost everything” seems to be at all-time highs, it's not all “green lights.”

2/ This week we sold down ~15% of our position in $SOFI to fund recent investments in technologies that will shape our future – such as Mitra Chem, @__spectral, @Syndica_io. We're proud to back $SOFI and still hold ~85% of our original stake.

— Chamath Palihapitiya (@chamath) November 18, 2021

Palihapitiya, who is also the Chairman of Virgin Galactic Holdings Inc SPCE, pointed towards record-high inflation and said, “we’re printing more money than ever with talk of more stimulus on the way.”

The Golden State Warriors basketball team owner wrote, “It leaves me wondering what this all means and what I should be doing, if anything?”

SoFi Technologies shares fell 1.31% to $20.30 in the after-hours session on Thursday after closing 2.6% lower at $20.57 in the regular session.

See Also: Should You Buy SoFi Technologies (SOFI) Stock

Why It Matters: SoFi Technologies went public in May after merging with Palihapitiya's special purpose acquisition company Social Capital Hedosophia Holdings V.

Palihapitiya noted that there are still areas of the market such as climate science, life sciences, and alternative finance that are “ripe for opportunity.” The SPAC King said he wondered if he should relocate risk from the public to private markets and then went on to say that is the reason why Social Capital decided to sell nearly 15% of its stake in SoFi.

Apart from building cash reserves, Palihapitiya said he was funding several new investments in private companies. He named Mitra Chem — involved in next-generation battery production in the U.S., Spectral — a company related to building FICO score for Web3, and Syndica — akin to a Web 3 version of Amazon.com, Inc’s AMZN Amazon Web Services unit.

Notably, Palihapitiya made mention of “two entrepreneurs” who are taking “chips off the table” to the extent of over $10 billion this year and counting. 

Two notable entrepreneurs who have sold shares to the tunes of billions recently include Tesla Inc TSLA CEO Elon Musk and Amazon Chair Jeff Bezos. Palihapitiya did not specify any names in his note. 

Palihapitiya, who once warned against selling Tesla stock, exited the position in the automaker in September. Palihapitiya is known to be a believer in Tesla, Amazon, and Bitcoin BTC/USD.  

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