Publicly traded companies and other businesses currently hold some $10 billion worth of bitcoin.
Cutting edge MicroStrategy inc. has the most at half a billion dollars, followed by asset management firm Galaxy Digital Holdings according to a stats site.
Square is third with $50 million worth of bitcoin, while the rest are mainly crypto related save for a newcomer, Mode Global Holdings.
“The LSE-listed Fintech Group, announced today that it has allocated up to ten percent (10%) of its cash reserves to purchase Bitcoin and adopt it as a treasury reserve asset,” the company said before further adding:
“The move is part of Mode’s long-term goal to protect investors’ assets from currency debasement.
With UK interest rates at a record low of 0.1%, Mode is also seeking to diversify away from low-interest money market instruments in order to maximise the value of returns from its recent fundraising.”
Bitcoin is thus becoming a credible investment option after numerous studies have suggested it has positive qualities as a diversifier in an investment portfolio.
Because of its unique nature, bitcoin remains uncorrelated to other asset classes, meaning one should have at least 1% of their investments in crypto, with some suggesting 10% or more for riskier/younger clients.
It remains to be seen however whether there will be a new trend of companies holding their cash in crypto, with the big ones having some half a trillion or more in treasury reserves.
The increasing devaluation may well force them to diversify, but already some 785,999 bitcoin is held by these 23 companies with Mode seeing its stock price rise as well after the announcement by about 10% from $46 to above $50.