- Synbiotic, a German cannabis firm, says it is moving some of its free liquidity into Bitcoin.
- The purpose is to use Bitcoin to hedge against fiat currency devaluation.
Synbiotic hedges with Bitcoin to protect against inflation
A German company, Synbiotic, has announced that it is starting to buy Bitcoin with some of its free liquidity. The company revealed that its experience with crypto as a means of payment has been incredible. In addition, the CEO, Lars Müller said that many of the company’s subsidiaries have added Bitcoin as an alternative means of payment to Euros.
SynBiotic announced on Tuesday that it has bought Bitcoin to hedge against Euro devaluation, therefore, making it the first German public company to make this move. The reason given by the company is its concern about the possible devaluation of fiat currency due to the increase in money supply in the Euro and USD zones.
Bitcoin is the antithesis of fiat currency —Synbiotic CEO
Recently, there has been an influx of large crypto traditional companies into the crypto space. This doesn’t come as a surprise as many crypto analysts had already predicted a rise in adoption cases. Last week, Tesla announced that it had bought $1.5 billion worth of Bitcoin. The news from Tesla drove the price of Bitcoin even higher.
Similarly, companies like MicroStrategy had already invested in Bitcoin and also pitched the coin to other companies. Some days ago, the firm announced that it would be issuing $600M worth of convertible notes and would then use the net proceed to buy more Bitcoin. Right now, MicroStrategy is the largest holder of Bitcoin with more than 71,079 BTC in their custody.
The CEO of the company, Lars Müller, emphasized that Bitcoin is the antithesis of fiat currencies because of its limited supply. He also revealed that the company is more confident in Bitcoin than any other fiat currency due to its distrust of central institutions that can easily control money supply.