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Nasdaq-listed Fathom Holdings announces plan to diversify treasury with Bitcoin
- Fathom Holdings is planning to establish a crypto treasury.
- The company has chosen crypto due to continued growth in institutional adoption.
- Fathom’s stock price was not affected by the announcement.
Nasdaq-listed Fathom Holdings has secured permission from its Board of Directors to list Bitcoin as a critical asset under its management, a move to diversify its US dollar-controlled balance sheet.
Fathom Holdings announced on January 23 that it can use up to 50% of its surplus cash reserve to nourish its Bitcoin reserve. The enterprise aims to grant up to $500,000 toward BTC or Bitcoin exchange-traded funds (ETFs).
However, they noted that they would adjust the allocation to align with the firm’s performance requirements and market circumstances.
Bitcoin is critical as a hedge currency risk
CFO Joanne Zach of Fathom Holdings is upbeat that the decision to establish a Bitcoin reserve shows their zeal to diversify their treasure holdings. Bitcoin is a decentralized store of value that has been highly adopted since 2023.
Zach stated:
The integration of Bitcoin into commercial and financial strategies has accelerated across financial markets, positioning it as both a hedge against inflation and a safeguard against economic and currency risks in the global economy.
Joanne Zach
The announcement did not trigger changes in Fathom’s stock price. It trades around $1.33 per share and has a market cap of approximately $30 million.
Fathom CEO Marco Fregenal indicated that they have always been innovators in the digital economy, and having a Bitcoin reserve aligns with their mission. Moreover, the entity plans to enable Bitcoin as a payment option to drive real estate transactions through its software platforms.
Corporations and institutions are rapidly adopting Bitcoin
Zach said that Fathom chose to go with Bitcoin partly due to corporations’ and institutions’ rapid adoption of digital assets. In their first 11 months of trading, the US spot Bitcoin ETFs broke $100 billion in net assets, marking the most successful ETF launch ever.
According to BitcoinTreasuries.NET, more than 70 publicly traded funds have acquired Bitcoin and jointly own more than $64 billion worth of BTC. However, MicroStrategy holds more than three-quarters of the BTC.
Other famous tech companies have also submitted a proposal to establish a Bitcoin treasury. Meta and Microsoft are in the queue to create a reserve. However, Microsoft has already voted against the adoption of Bitcoin.
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Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Nellius Irene
Nellius is a Business Management and IT graduate with five years of experience in the cryptocurrency industry. She is also a graduate of Bitcoin Dada. Nellius has contributed to leading media publications, including BanklessTimes, Cryptobasic, and Riseup Media.
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