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Nextech announces $2M Bitcoin purchase, plans to add more BTC later this year

The Canadian augmented reality firm joined the ranks of Bitcoin-holding companies with its recent $2 million purchase of the crypto.

Image by Pete Linforth from Pixabay

Wed, 06 Jan 2021, 10:27 am UTC

The list of companies holding Bitcoin (BTC) as part of their treasury reserves just keeps getting longer. The latest one to join the trend is a Canadian augmented reality firm with its recent $2 million purchase of the crypto.

Nextech AR Solutions said on Tuesday its initial purchase of Bitcoin valued at $2 million, according to Bitcoin.com. The announcement was made by Evan Gappelberg, chief executive officer of the augmented reality company based in Vancouver, Canada.

The firm appears to be planning to add more Bitcoin to its treasury reserves in the coming months ahead. Gappleberg also revealed the possibility that Nextech may acquire more BTC in 2021.

The company’s recent crypto purchase reflects the changes to its diversification strategy. “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,” the Nextech CEO explained.

Just like other firms that recently decided to invest in Bitcoin, Nextech believes in the crypto’s long-term store of value and even likened it to gold. “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%,” Gappleberg added. “Bitcoin is a digital version of gold which has a total market capitalization of $10 trillion versus bitcoin’s total market capitalization of only $500 billion.”

The Nextech CEO said that the adoption of Bitcoin as a store of value asset will soon catch up to gold. “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,” he added.

A growing number of companies are now including BTC as a reserve asset to counter inflation. For instance, Canadian fintech firm Mogo revealed in December that it plans to make an initial investment of $1.5 million in bitcoin

“[Mogo] plans to make an initial corporate investment of up to $1.5 million in bitcoin and will consider additional investments in 2021, as it monetizes its $17 million investment portfolio,” Mogo announced. “The initial purchase would represent approximately 1.5% of Mogo’s total assets as of the end of the third quarter of 2020.”

Mogo president and CFO Greg Feller said that they believe in BTC as an asset class as well as its long-term potential. “In addition, we believe bitcoin represents an attractive investment for our shareholders with significant long-term potential as its adoption continues to grow globally,” Feller explained.

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