Palantir May Be Signaling the End for Bitcoin

Palantir May Be Signaling the End for Bitcoin

Disclaimer We have been long since Private Placement Levels that means pennies to you Outsiders

Accepting volatile Bitcoin will not do any favors for PLTR stock

Ragnar Lothbrok

When I last discussed Palantir Technologies (NYSE:PLTR), the controversial artificial intelligence and big data firm, I described several challenges that made PLTR stock questionable.

Given how wild the market has been, I’m glad in a way that my warnings were not unfounded. Shares have been very questionable since peaking in late January of this year.

But one of the headwinds against Palantir seems especially relevant right now and that’s insider selling. Earlier, I stated that “Going back to October 2020, the main executives — including CEO Alexander Karp — have been cashing in on PLTR stock.”

Of course, you want to be careful about not reading too much into this. Executives sell for all kinds of reasons. Perhaps they want to buy another yacht with their paper riches. Or maybe it could be something as mundane as needing to repair the downstairs bathroom in their mansion.

Still, I can’t help but wonder. If those closest to the business feel that cashing out is the best course of action, how should public shareholders feel? My article went live at the end of April. So far in May, the only insider moves are again sell orders, most of them from Karp.

At this point, it’s really hard to trust PLTR stock. And the crazy thing is, the hate mail will probably go to me and not to the insiders who are dumping millions of shares into the open market. Rational the internet is not.

If Palantir wanted to restore shareholder trust, they’re going about in a very strange way. A few weeks ago on May 11, the technology firm stated that it will accept Bitcoin (CCC:BTC-USD) as payment. Doubling down on the narrative, management also declared that “it was considering having Bitcoin or other types of cryptocurrencies on its balance sheet,” per a Reuters report.

Really?

PLTR Stock May Be Signaling the End of Bitcoin Bull Rally

Because this is the internet, my words will be misinterpreted, my motives erroneously judged as malicious. I tell you, this rush to judgment and the unwillingness to communicate is the reason America is becoming a fifth-rate country. But let me just say it for clarity: I freakin’ love cryptocurrencies.

But I also love reality. As much as I would advocate for a decentralized, democratized economy, the blockchain industry has not yet reached the level of maturity it needs to actualize this gargantuan task. Therefore, I sold a significant portion of my crypto holdings to realize my paper gains. It’s changed my life, where I’m happily a true homeowner, not a mortgage holder.

So, it fundamentally bothers me that Palantir — and other companies to be fair — is accepting Bitcoin as payment. As well, it boggles the mind that management would consider adding cryptos to its balance sheet. Right there, that’s a signal to be extremely cautious about PLTR stock.

Look, I’m going to be very honest with you. People probably know me best as the author of stocks to buy: tech stocks, cheap stocks, dividend stocks, retirement stocks, telecom stocks, the list goes on and on.  about the only thing I can tell you with certainty is that stocks go up and they go down. That’s it.

But I do consider myself an expert on cryptocurrencies because I didn’t just invest in this, I’ve lived it. I went through so many highs and lows. Indeed, Bitcoin represents the beautiful chaos of the human mind.

Therefore, I just don’t see why Palantir would even entertain having Bitcoin on its balance sheet. Honestly, if I were a major stakeholder of PLTR stock, I’d be more comfortable having bags of cocaine in the books. At least there’d be a predictable valuation stream for that.