Another company is betting on Bitcoin in the long-term. BIGG Digital Assets, the owner of Netcoins and Blockchain Intelligence Group, has added 40 BTC to their company’s long term treasury holdings. BIGG Digital Assets started accumulating Bitcoin in 2015 and believes the value proposition has never been stronger. Aside from BIGG Digital Assets, other corporate entities like MicroStrategy and Square have expressed similar sentiments. Companies are embracing Bitcoin’s store of value capabilities, especially in an environment that is witnessing dollar devaluation.
BIGG Digital Assets Bitcoin Treasury
BIGG Digital Assets, owner of Netcoins and Blockchain Intelligence Group, has announced the purchase of 40 Bitcoins. The newly purchased Bitcoins will be added to the companies long-term treasury holdings. It is important to note that this is not the companies first BTC purchase. BIGG Digital Assets has been purchasing Bitcoin since 2015, and will now have a treasury of 189.5 BTC. At the current market price, this equates to $3.6M in BTC holdings. Company leadership is a strong believer in Bitcoins infrastructure and sees great price appreciation in the future.
Mark Binns, the CEO of BIGG’s, stated that:
“BIGG (formerly BIG Blockchain Intelligence Group) started accumulating Bitcoin as far back as 2015. Bitcoin has appreciated substantially as an asset class over 1, 2, 5 and 10 years horizons, and we believe the potential for impactful price appreciation is stronger today than ever. Institutional involvement and buying, and mainstream adoption, will continue to drive the price of Bitcoin as supply remains capped. We believe our Bitcoin holdings can act as self financing, over time, as we continue to expand our core crypto trading and blockchain forensic software businesses.”
Institutional investment in cryptocurrency has surged all year long. Back in May of this year, it was reported that Grayscale, the largest digital currency asset manager, was seeing record growth. With the global pandemic sparking long-term macro concerns, institutions have been expressing interest in large-cap crypto assets such as Bitcoin and Ethereum. These digital assets have been inversely correlated to traditional markets and gave institutions the ability to de-risk investor portfolios. Due to on-going concerns regarding inflation and debt, companies have been flocking to Bitcoin to store treasury assets. Many see Bitcoin as “digital gold” that historically does well when the dollar is struggling.
Welcome To The Party
BIGG Digital Assets is not the only company loading up their Bitcoin treasury assets. MicroStrategy, a business intelligence firm, purchased $250M worth of BTC in August of this year. Michael Saylor, the companies CEO, believes that Bitcoin is a great hedge against inflation that is being fueled by on-going government stimulus. After investing an additional $50M in December, MicroStrategy held 40,284 Bitcoins. The company now plans to double down. According to a recent report, MicroStrategy is raising $400M in convertible bonds to accumulate more BTC. Saylor stated that:
“What we’re trying to do is preserve our treasury,” he said. “The purchasing power of the cash is debasing rapidly.”
Jack Dorsey, the CEO of Square and Twitter, has also expressed great interest in Bitcoin. If you visit his profile on Twitter, his bio is short and sweet. Dorsey’s bio simply displays “#bitcoin.” In October of this year, Square announced a $50M investment in Bitcoin. At the time of the acquisition, the investment represented 1% of the companies total assets.
Chief Financial Officer, Amrita Ahuja, stated that:
“We believe that bitcoin has the potential to be a more ubiquitous currency in the future. As it grows in adoption, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey.”
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