NexTech, a leading provider of virtual and augmented reality services has decided to convert a portion of its treasury into bitcoin just like software giants MicroStrategy. The AR Solution provider would be investing an initial amount of $2 million from its treasury funds to buy Bitcoin and also hinted at the possibility of buying more in the coming year.
2020 has seen leading public companies make a foray into the digital space and have bought millions of bitcoin as a long-term investment. Some of the leading public companies to invest in bitcoin include Guggenheim Partner’s $530million bitcoin purchase, Mass Mutual invested $100million, Square, Inc. (SQ) NYSE has bought $50 million worth of BTC and MicroStrategy who is currently leading the institutional bitcoin investment portfolio.
Evan Gappelberg, NexTech CEO, revealed that the decision to invest a portion of their treasury in bitcoin came from the growing influence of bitcoin as an inflation hedge. He explained,
Our investment in Bitcoin is part of our new capital diversification and allocation strategy with the intent to maximize long-term value for our shareholders. This initial investment reflects our belief that Bitcoin is a long-term store of value and an attractive investment asset with more long-term appreciation potential than holding cash, which is currently yielding 0.06%.
Gappelberg believe Bitcoin would eventually replace gold just like many others and said,
Bitcoin is a digital version of gold which has a total market capitalization of $10trillion versus Bitcoin’s total market capitalization of only $500billion. We think that as part of the digital transformation a paradigm shift to digital gold is underway and as Bitcoin is seen more and more as a store of value, just like gold, it will catch up to gold.”
Bitcoin is the New Store of Value For Institutions
As of today, more than 10 publically trading companies have bought bitcoin over the past year as institutions’ interest and belief in Bitcoin has grown by many folds over the past couple of years. Many of the mainstream financial institutions were quite skeptical of bitcoin calling it a bubble and money laundering machine and whatnot. However, most of those skeptics have not just changed their opinion about it, but even buying bitcoins in millions in fear of growing scarcity of the digital asset.
MicroStrategy is currently the most bullish institution that started converting a portion of their treasury into bitcoin starting in August this year and in total they have bought more than $1 billion worth of BTC. Michael Saylor, the CEO of MicroStrategy is currently most bullish on Bitcoin and believes Bitcoin would soon become the first choice of treasury assets for many.
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