The Herd is Coming: Software Startup Snappa Converts its Cash Reserves into Bitcoin
It has started!
MicroStrategy invested $250 million, and then Tahini’s converted all of their cash reserves into Bitcoin. Now, the graphic software startup, Snappa, is replacing 40% of its cash reserves with the largest digital asset.
In the official company blog, the co-founder of Snappa, Christopher Gimmer, who is a finance major with a minor in economics, shared that they decided to diversify in bitcoin because of the fear of inflation.
The massive amounts of quantitative easing along with fiscal stimulus, that he expects the governments to keep doing more of, will result in currency debasement and a loss of purchasing power.
As such, “in order to hedge this risk, we’ve chosen to adopt Bitcoin as a primary reserve asset on our balance sheet.”
Like a true Bitcoiner, Gimmer emphasizes the scarcity of the digital asset, which, unlike fiat, will get more scarce over time. He also sees BTC hitting $100k by the end of 2021 as “fairly realistic,” thanks to its fundamentals and the state of the macro-economy.
As the Canadain-based startup continues to scale and generate free cash flow, they had to choose the option to put the money in, and obviously, they went with the “good money.”
Also, with only 1.7% of gold's market cap, he is “confident” that bitcoin will continue to outperform the precious metal as well in the coming years and decades.
“After falling down the rabbit hole and spending hundreds of hours studying the underlying protocol and all the game theory behind it, we began steadily accumulating bitcoin beginning in March of this year,” said Gimmer.
“This position now makes up a significant percentage of our company’s overall cash reserves.”
So, the small-scale companies have already started taking the bitcoin route just like the countries facing problems with their fiat currency; Venezuela, Argentina, Zimbabwe, Nigeria, Kenya, and Turkey, have been the first ones to adopt BTC.
As Marty Bent said, “The herd is coming.”