New York, Dec. 29, 2020 (GLOBE NEWSWIRE) -- Tech Capital, the trusted source for technology news and analysis, is highlighting recent comments made by MicroStrategy Inc, Square Inc, NexTech AR Solutions Corp, PayPal Holdings Inc and CleanSpark Inc discussing the adoption of Bitcoin in corporate asset allocation strategy.
According to the currency tracking site, bitcointreasuries.org, Bitcoins worth more than $30 billion are held by companies using them instead of traditional reserves such as cash and shares. Included on the list is MicroStrategy Inc, which is now sitting on 70,470 Bitcoins, bought for around $1.125 billion.
Corporate and investor demand for the cryptocurrency, which, like gold, is prized for its safe-haven qualities, recently pushed the Bitcoin price above US$27,000 to a new all-time high. In March it was trading below US$5,000.
MicroStrategy Incorporated MSTR chief executive Michael J Saylor says Bitcoin is a "dependable store of value"
Earlier this month the business intelligence company announced it had purchased an additional 29,646 Bitcoins for US$650 million in cash "in accordance with its treasury reserve policy".
"The acquisition of additional Bitcoins…reaffirms our belief that Bitcoin, as the world's most widely-adopted cryptocurrency, is a dependable store of value," said chief executive Michael J Saylor.
"We believe the proactive management of our balance sheet, combined with the improved revenue and profitability performance of the company, have been significant factors in the recent appreciation in our stock price."
Chief financial officer Phong Le added… "The company continues to believe Bitcoin will provide the opportunity for better returns and preserve the value of our capital over time compared to holding cash. We also remain dedicated to our customers and our goal of operating a growing profitable business intelligence company."
Square Inc's SQ CFO Amrita Ahuja says we "intend to learn and participate in a disciplined way"
"We believe that Bitcoin has the potential to be a more ubiquitous currency in the future," said Square's CFO, Amrita Ahuja, after the purchase of Bitcoins worth $50 million. "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."
Square's founder and chief executive, Jack Dorsey, is a long-time advocate of the digital currency. The Twitter co-creator is on record as saying it could eventually become the world's "single currency".
NexTech AR Solutions Corp NEXCFNTARN)) CEO Evan Gappelberg: It's about "maximizing long-term value" for shareholders
This week the provider of virtual and augmented reality experience technologies and services for e-commerce, education, conferences and events bought $2 million worth of the cryptocurrency and said it may acquire more in 2021.
NexTech CEO Evan Gappelberg said: "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."
Gappelberg continued… "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 $500 billion. We think that as part of the digital transformation a paradigm shift to digital gold is underway and that as Bitcoin is seen more and more as a store of value, just like gold, it will catch up to gold."
Watch NexTech AR Solutions CEO Evan Gappelberg's December 2020 Livestream Now
Paypal Holdings Inc PYPL CEO Dan Schulman says the shift to digital currencies is "inevitable" and brings clear advantages
"The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion and access; efficiency, speed and resilience of the payments system; and the ability for governments to disburse funds to citizens quickly," said Dan Schulman, CEO of PayPal.
"Our global reach, digital payments expertise, two-sided network, and rigorous security and compliance controls provide us with the opportunity, and the responsibility, to help facilitate the understanding, redemption and interoperability of these new instruments of exchange. We are eager to work with central banks and regulators around the world to offer our support, and to meaningfully contribute to shaping the role that digital currencies will play in the future of global finance and commerce."
CleanSpark Inc CLSK upping its game in the mining space
The company has increased its mining capacity by more than 100 petahash per second to 300 PH/s.
"In the Bitcoin mining industry, time is money, and due to the meteoric rise in price, ASIC miners are exceedingly difficult to procure. Many mining companies, both publicly traded and privately held, have stated plans to expand capacity in six to nine months, however, we have focused on sourcing units for immediate deployment," said Zachary Bradford, CleanSpark's CEO.
He added… "As Bitcoin prices have continued to rise, and industry leaders such as Square, PayPal, MicroStrategy and others have made substantial investments in Bitcoin, we believe this strategy will provide exceptional returns for our shareholders. This opportunity presented us with a chance to deploy additional resources in furtherance of our strategy to utilize the available energy supply in the most efficient and profitable manner possible."
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