Two Canadian business firms, Snappa and Tahinis, have recently joined the growing number of business firms investing in Bitcoin as a reserve asset. In a blog published on 24 August 2020, Christopher Gimmer, CEO and founder of Snappa, revealed that the company had allocated a considerable amount of money from its cash reserves to purchase Bitcoin as an asset.
As per the blog post, the graphic solutions firm Snappa started accumulating bitcoin from March of this year. In addition, Gimmer adds that the decision to invest in Bitcoin as a reserve asset was not rushed at all, but rather a long-term decision.
Snappa has invested 40 percent of its cash reserve in cryptocurrency. Previously, the Middle East Food Joint Venture Tahinis also joined the bandwagon by officially announcing on Twitter on August 18 that they had allocated their entire cash reserve to purchase Bitcoin and invest as an asset.
In the Twitter thread, Tahinis restaurant’s owner clarified his decision to go all-in Bitcoin investment was backed by the fact that “it offers a much better alternative to saving cash” in his own words
Gimmer reinstates his total confidence in Bitcoin as a reserve asset
The Snappa CEO, confirmed that the decision to invest in Bitcoin was based on the numerous benefits that the cryptocurrency has to offer relative to cash reserves. Gimmer claims that there is a need to invest in viable reserve assets as some banks have now lowered their low-interest rates to 0.45%. There is also evidence to back the fact that the purchasing power of the dollar has dropped over time.
Gimmer further argues that Bitcoin offers much superior technology for savings relative to cash reserves. He also claims it is better to invest in Bitcoin as opposed to cash reserves in a fixed supply based currency. It should be noted that this action comes as businesses face global economic instability in the wake of the ongoing Covid-19 pandemic
More Firms embracing cryptocurrency as an asset
Microstrategy, a billion-dollar firm based in the U.S also recently made the ‘switch’ to Bitcoin assets. The firm invested a little over 200 million dollars in purchasing Bitcoin, which translated to about 21,454 worth in BTC.