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Globant Purchases $500,000 Worth Of Bitcoin During The First Quarter Of 2021

Globant, the major IT conglomerate, has become the latest big firm to invest in Bitcoin (BTC). It has purchased $500,000 worth of BTC during the first quarter of 2021.

It has been reported that the firm declared its crypto-asset purchases for the first three months of the year in a statement to the United States Securities and Exchange Commission (SEC) made on Tuesday.

The firm stated:

“During the first quarter of 2021, the company purchased an aggregate of [$500,000] in crypto assets, comprised solely of bitcoin.”

However, the company’s crypto investments and expenses were listed among its “intangible assets,” alongside licenses, customer relationships, customer contracts, and non-compete agreements in the company’s possession. Globant stated that it declares Bitcoin as an intangible asset because it “lacks physical form and there is no limit to its useful life.” It added that any gains made on digital assets will not be recognized until they are sold.

Despite revealing the presence of Bitcoin on its balance sheet, the firm has not revealed the cost-basis paid for its BTC stash. With its purchases coming in the first quarter, any BTC buys made from the second week of February onward would currently be sitting at a loss. While numerous publicly traded companies have purchased BTC in recent months, many are currently underwater on their BTC buys.

In a fight between the bulls and bears, the IT firm Globant knows which side to pick. The institution revealed that it bought $500M of Bitcoin in the first quarter of 2021. — Cointelegraph (@Cointelegraph) May 25, 2021

According to Bitcoin Treasuries, six publicly listed firms are currently in the red on their BTC acquisitions now that Bitcoin has retraced back to its early-February price levels.

The report said that Japanese online gaming firm Nexon announced its $100 million BTC purchase on April 28, with the Bitcoin now worth $67 million. Seetee, a subsidiary of Norwegian energy giant Aker, revealed a $58.6 million Bitcoin purchase in early March that has declined in value to $44.9 million as of Tuesday.

Likewise, Chinese tech company Meitu, which announced $49.5 million in Bitcoin buys during March and April, has seen the value of its crypto holdings shrink to $36 million. Financial consulting firm Brooker Group is also down $2 million on its $6.6 million BTC buy, while enterprise cloud platform Phunware has seen the value of its $1.5 million Bitcoin stash fall by one-third since purchasing.

Multinational investment firm BlackRock also appears to have lost 33% of its $360,000 BTC acquisition.

Thus, the firm acquired the position in March as profits from a futures trade it entered into in January, meaning BlockRock did not spend any fiat to accumulate its crypto.

Source: Cointelegraph



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