A few weeks ago, we reported on how a trailblazing company called Microstrategy bought $250 million worth of Bitcoin as a primary reserve asset.
This week, we see two Canadian businesses are following suit. One is Snappa, a graphic design company, and the other is a chain of restaurants called Tahini’s.
Reporting at Cryptopotato shows that both of these businesses have sunk a lot of their existing cash on hand into Bitcoin with similar philosophies about how that impacts their business financials.
“The Snappa boss, while explaining the reason behind the company’s ‘Bitcoin move,’ pointed out why it is important to save earnings/profits in a currency that has a fixed supply,” writes Himadri Saha, illuminating part of the thinking behind a BTC reserve, which is centered around money printing and the fluctuating value of fiat currencies.
In other words, because the fiat doesn’t promote value stores, and can be devalued rapidly by central banks monkeying around with money systems, companies are finding cryptocurrencies to be a more stable way not only to store value, but to get interest. Snappa’s bank, execs said, “slashed the interest rate on our ‘high interest’ savings account to 0.45% earlier this year.”
As for the restaurant chain, Saha’s story and related tweeting by the owner tells a story of financial chaos after the pandemic, in which workers tended to not show up for work, and it became necessary to plan for the long term.
“Eventually, Tahini’s founder realized that Bitcoin is ‘a true free savings technology that stores wealth across time and space.’” Saha writes.
Will more firms adopt this strategy? As of right now, Snappa and Tahini’s are the major names that you’ll see tied to Bitcoin reserve strategy, but that’s likely to change in the near future. Stay tuned.
