It has been reported that this decision has been made in the light of Bitcoins’ widespread adoption by the institutions this year.
However, 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 report said that the company feels that “the timing is right for this move,” as the widespread adoption of Bitcoin continues.
#NexTechARSolutions Announces $2M #Bitcoin Investment; Plans to Add More #BTC in Treasury in 2021https://t.co/ZbjuQKT01I — ₿EG News – BitcoinExchangeGuide (@bitcoinsguide) December 29, 2020
Much like other companies, NexTech aims to maximize the long-term value for its shareholders with the new capital diversification and allocation strategy.
Evan Gappelberg, the CEO of NexTech, 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 noted 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.
Thus, he concluded:
“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.”
Source: Bitcoin Exchange Guide