Bitcoin continued to attract large investment from institutions as another Canadian augmented reality (AR) firm NexTech is going to invest $2 million in Bitcoin.
NexTech, also known as NexTech AR Solutions, a leading provider of virtual and augmented reality (AR) experience technologies and services for eCommerce, education, conferences, and events, announced its plans in a press release on Tuesday, December 29. The company will make an initial investment of $2 million in the largest cryptocurrency by market cap for treasury reserves and has plans to add more to it in 2021.
According to some sources, NexTech had US$12.79 million in its reserves until the end of Q3 of 2020. According to these numbers, this initial investment represents roughly 15.6% of its available cash.
Evan Gappelberg, CEO of NexTech, describing Bitcoin as digital Gold, commented:
“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.” He continues, “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 $10trillion versus Bitcoin’s total market capitalization of only $500billion. 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.”
The NexTech The purchase of $2 million in bitcoin (BTC) follows a slew of companies purchasing BTC for reserves, and a great deal of them stem from Canada. NexTech investment has followed Mogo Inc., a NASDAQ-listed Canadian fintech firm, that, as reported, has recently announced an initial Canadian $1.5 million investment in Bitcoin. This investment represents 1.5% of Mogo’s total assets as of the end of the third quarter of 2020.
The company also cited Guggenheim Partners, Mass Mutual, Square, and MicroStrategy for inspiration. Among these companies, MicroStrategy is leading the way to make a strategic investment in Bitcoin with more than $1 billion investment in 2020.
These large institutional investments have helped Bitcoin to see 300% growth in 2020. That’s why NexTech said:
“The company feels that as the widespread adoption of Bitcoin continues, the timing is right for this move.”
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