Orlando Bravo’s FTX Burn: A Lesson in Knowing When to Walk Away
Orlando Bravo, CEO of private equity firm Thoma Bravo, has officially said “no more” to crypto after losing $130 million in the FTX collapse. In 2021, Bravo led a $900 million investment in FTX, a crypto exchange that was once valued at $18 billion. However, FTX’s shocking implosion in 2022 caused massive losses, including roughly $8 billion, leaving investors reeling.
Bravo’s decision to avoid crypto in the future reflects the broader impact of the FTX collapse. Many investors are rethinking their crypto strategies, especially after the devastating losses.
In a recent CNBC interview, Bravo explained his firm’s decision, stating, “Once you make a mistake and get burned, our philosophy is to never touch it again.” Thoma Bravo, which oversees $160 billion in assets, has shifted its focus to tech investments in companies like Proofpoint and Anaplan.
Despite his crypto exit, Bravo remains bullish on blockchain technology. He sees it as “a powerful way of doing many things” with growing use cases across industries. He believes that the technology behind crypto still has potential even if individual crypto assets may carry risks.
Bravo’s experience is a lesson in knowing when to walk away, even when the promise of future profits looms. While blockchain technology has its potential, it is important to remember that the cryptocurrency market is volatile and high-risk. Investors should conduct thorough research and proceed with caution.
