Loading...

Bitcoin as a reserve asset: Canadian software firm, Snappa joins MicroStrategy in holding crypto reserve

In this post:

It is worth saying that big companies are waking up to understand Bitcoin as a reserve asset. This move was recently displayed by a publicly-traded business intelligence provider, MicroStrategy. Joining this trend is Snappa, which disclosed on Monday that a significant percentage of its cash reserve has been converted to crypto reserve.

Snappa invests Bitcoin as a reserve asset

Snappa is a Canadian online graphics editing software. In a private chat with journalist Zack Voell, one of the founders of the company, Christopher Gimmer, revealed that Snappa has invested 40 percent of its cash reserve to Bitcoin as a reserve asset. Gimmer blamed the depreciating value of the national currency as one of the reasons that prompted their decision.

In a blog post published to explain the company’s preference for Bitcoin as a worthwhile asset, the co-founder of Snappa began by asking:

“Would you rather save money in a currency whose supply is inflating each year? Or would you rather save in a currency whose terminal supply is programmatically fixed?” 

Gimmer also mentioned in the report that the need for a viable reserve asset became stronger after the bank reduced their interest rate to 0.45 percent, not minding they are holding those funds in “high interest” savings account. This is evidence that the purchasing power of both the US and Canadian dollar has dropped, Gimmer explained.

Gimmer confide in Bitcoin as a reserve asset

Having despised holding more cash reserve especially at this time of economic uncertainty, Gimmer added that “fortunately, I believe we now have a far superior savings technology available to us. That technology is Bitcoin.” This is part of the reasons why the billion-dollar company, MicroStrategy, also chose Bitcoin as a reserve asset.

The company reportedly allocated more than 200 million in Bitcoin as an alternative asset. This amount netted the company about 21,454 BTC, which made headlines in most of the cryptocurrency media.

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.

Share link:

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

If Joe Biden bails on the race, what’s next?
Cryptopolitan
Subscribe to CryptoPolitan