Greenpro Capital to Invest $100M in Bitcoin; Will Replace Cash With BTC on Balance Sheet in Q1
Greenpro “fully believe in BTC as a store of value” and sees other crypto-assets like ETH as a better return option. Bitcoin investments have become the way to pump the company shares in 2020.
The Kuala Lumpur headquartered Nevada corporation, Greenpro, has announced its intention to set up a Bitcoin Fund for investment. The company will use its subsidiary, cryptocurrency exchange CryptoSX, to acquire its BTC stake.
The decision to launch a Bitcoin fund has been made in the light of the ongoing mass adoption of BTC by banks, hedge funds, insurance companies, and institutions, said the company in its official announcement.
Greenpro also believes that Bitcoin, the world’s most widely-adopted cryptocurrency, is a reliable store of value as such the company's crypto strategy will produce significant value to the company.
The company not only has a belief in BTC but also other cryptos like Ethereum which by providing better returns, preserve the value of their capital as such a better option than holding cash in their balance sheet.
This year first MicroStrategy, which has invested more than a billion-dollar in BTC as a reserve asset, and then Square with its $50 million investment has given value to BTC as a replacement to cash as a reserve asset. Greenpro CEO CK Lee, who recently received an Honorary Ph.D. in Finance and Cryptocurrencies from Rivera University located in France said,
“We fully believe in BTC as a store of value. I've instructed our investment bankers to raise debt in Q1, 2021 of up to US$100 million to invest in BTC. The Company will also invest its own cash into BTC.”
In response to the news of Bitcoin investment, the shares of Greenpro Capital jumped 133% in pre-market on Monday. After going as high as $2.41, a price level that was last seen in October of this year, GRNQ shares have settled around $1.87 for now.