A Canada-based reality company, NexTech AR Solutions, has decided to use part of its treasury reserves to buy $2 million worth of Bitcoin. The firm made this decision following the significant increase in institutional investors, as several notable companies now use Bitcoin as a hedge against inflation.
NexTech AR joins the train of institutional investors
The blurry global economic picture this year has inspired yet another company to protect its wealth in Bitcoin. According to a press release on Tuesday, the company announced that it would make an initial investment of $2 million.
The Chief Executive Officer of NexTech AR, Evan Gappelberg, also commented on the decision:
“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 added that Bitcoin is an emerging digital alternative to gold. Comparing gold’s $10 trillion market cap and Bitcoin’s $500 million, Evan believes that Bitcoin has more room to grow.
2020 is the year of the corporate BTC Investment
Earlier in 2020, MicroStrategy thrilled observers in the crypto industry with a significant investment, which took the firm’s total holdings above $1 billion. Following MicroStrategy was Square Inc, a payments company owned by Jack Dorsey, which bought $50 million worth of BTC using its reserves.
Later on, MassMutual announced its investment in BTC. The almost 170-year-old Massachusetts-based company diversified $100 million of its more than $275 billion assets under management into Bitcoin earlier this month.
NexTech AR is only the latest in a series of companies buying BTC with their treasury reserves. MicroStrategy’s movement seems to be the catalyst behind the new wave of corporate Bitcoin hodlers. The growth of institutional investors has also triggered the recent price action, moving BTC into the mid $20,000 – $30,000 area.