NexTech AR Solutions Announces $2M Bitcoin Investment; Plans to Add More BTC in Treasury in 2021
The company says “the timing is right for this move,” and “a paradigm shift to digital gold is underway.”
The list of companies adding Bitcoin to their Treasury keeps on getting bigger and bigger.
The latest one to join, NexTech AR Solutions (NEXCF), plans to make an initial investment of $2 million in Bitcoin. The company is planning to add more BTC to its stash in 2021.
This decision has been made in the light of Bitcoins’ widespread adoption by the institutions this year. Besides Grayscale holding 607.14k BTC for its accredited and institutional investors, big names like Guggenheim, Mass Mutual, Square, and MicroStrategy have gone deep into the cryptocurrency.
The company feels that “the timing is right for this move,” as the widespread adoption of Bitcoin continues, as per the official announcement.
Much like other companies, NexTech aims to maximize the long-term value for its shareholders with the new capital diversification and allocation strategy. NexTech CEO, Evan Gappelberg said,
“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%.”
Gappelberg further notes that as a digital version of gold, Bitcoin only has a market cap of half a trillion dollars compared to precious metal's $10 trillion market capitalization. He 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.”
As we reported, another company Greenpro Capital announced that it will be launching a $100 million Bitcoin fund and will also replace cash with Bitcoin in its balance sheet.
As Anthony Scaramucci, founder and co-managing partner of Skybridge Capital said while Bitcoin has “caught fire.. we're still in very very early innings” and this is a “wave of early adoption by the institutional community.”
Currently trading around $26,700, Bitcoin has rallied more than 275% this year.