Canadian firm NexTech buys $2 million in Bitcoin; CEO reasons why
Canada-based firm, NexTech, an AR and VR solutions provider intends to make an initial investment of $2 million in Bitcoin and may add more at an unspecified date next year. Evan Gappelberg CEO of NexTech said that the investment in bitcoin was part of the firm’s new capital diversification and allocation strategy “with the intent to maximize long-term value for shareholders.”
Gappelberg believed that bitcoin was a long-term store of value and an attractive investment asset. According to the CEO, the digital asset also had a more long-term appreciation potential than holding cash, which currently yields 0.06%. He further called bitcoin a digital version of gold and said:
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.
Institutional investment in bitcoin has become the defining trend this year, which also fueled the Bitcoin rally. Guggenheim Partners recently decided to start allocating to bitcoin when it was worth $10,000. Other mainstream financial institutions such as MicroStrategy revealed over $1B in total bitcoin purchases made in 2020.
Bitcointreausuries suggested that over 800,000 Bitcoin or 4% of the total circulating supply is held by public companies. The list includes Galaxy Digital which holds 16,651 BTC and Square (4,709 BTC) which rank second and third, respectively.
Recently Grayscale Investments announced that its assets under management (AUM) are now worth $19 billion in crypto.