Canadian AR Firm Buys Bitcoin
Canadian AR company NexTech AR revealed its intentions to make a $2 million bitcoin (BTC) investment with plans to “add more in 2021” in a press release released on December 29.
The organisation would use its treasury funds to buy $2 million worth of bitcoin for “capital diversification,” per the source.
NexTech AR is a Vancouver-based AR company for the uninitiated, which had $12.79 million cash on hand as of September 30. The $2 million investment in BTC makes it an investment worth approximately 15.6 percent of the overall cash holdings of the company.
Evan Gappelberg, CEO, NexTech AR, commenting on the growth, noted:
“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.”
Adding:
“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%. Bitcoin is a digital version of gold which has a total market capitalization of $10 trillion 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.”
Notably, the press release states bitcoin’s rapid rise as a legal value store in 2020.
As numerous high-profile businesses have, to date, made public their growing confidence in bitcoin, the coronavirus pandemic stricken year proved to be a significant one for the premier cryptocurrency.
Major New Players in the Bitcoin Space
As stated earlier, unlike ever before, Bitcoin was institutionally adopted in 2020.
MicroStrategy revealed earlier this year that it was buying bitcoin as a reserve asset.
The Massachusetts Mutual Life Insurance firm, Jack Dorsey’s Square, Guggenheim Partners, and the U.S. insurance giant all followed the lead of MicroStrategy by buying bitcoin as a protection against global economic uncertainty and the declining greenback.
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