How To BEST Read Cryptocurrency Charts
- Mode invested 10% of its reserves in bitcoin
- Everyone is looking for salvation in bitcoin
British Mode picked up the trend for investing in bitcoin
Another company invested in bitcoin as a risk hedge
Mode Global Holdings has invested 10% of its reserves in bitcoin
The company followed the lead of Microstrategy and Square
British fintech company Mode Global Holdings announced a large purchase of bitcoin for cash reserves, becoming the country’s first public company to invest in a cryptocurrency
Earlier, Microstrategy and Square decided to take a similar step. As many market observers suspected, Microstrategy’s Bitcoin purchase in August inspired other companies to invest in digital currency..
Mode invested 10% of its reserves in bitcoin
Microstrategy was the first to announce the purchase of bitcoins, followed by Square. The fact that the two companies have added BTC to their balance sheet speaks to the growing appeal of cryptocurrency as a hedge against inflation and developments on the global macroeconomic front..
The next public company to show interest in bitcoin was Mode Global Holdings, which announced its decision in a press release published on Wednesday, October 21.
Fintech firm has invested about 10% of its cash reserves in bitcoin, citing increased uncertainty about the outlook for the global economy amid the ongoing coronavirus pandemic.
The company explained that the purchase of BTC is an attempt to protect investors’ assets from the devaluation of fiat currency, mentioning the record low interest rate of the Bank of England at 0.1%.
The firm recently completed an IPO, which raised £ 7.5 million. The press release explains that the decision to buy bitcoins was also driven by the desire to maximize the amount of profit from the IPO..
Mode has been familiar with the cryptocurrency world before. The company, which markets itself as a “Bitcoin banking app”, offers the sale of BTC and the opportunity to receive interest on deposits.
Everyone is looking for salvation in bitcoin
Now that Mode has joined Microstrategy and Square, we can talk about the emergence of a trend to change the perception of cryptocurrencies..
An illustration of this shift is the shift in position of Microstrategy CEO Michael Saylor. In 2013, he tweeted that bitcoin’s days are numbered, comparing it to gambling:
Having figured out the intricacies of this ecosystem this year, Sailor completely changed his mind. His recent appearance in industry podcasts and recent tweets only confirms this fact. So, in a recent publication, the head of Microstrategy pointed to a promising future for bitcoin:
Whereas before many perceived BTC as a tool for criminals, now it is gaining the status of an asset class that serves as a hedge against macroeconomic risks. Like Mode, Microstrategy and Square Express Concerns Over Fiat Currencies Falling Amid Unprecedented Stimulus Measures Around The World Amid COVID-19 Outbreak.
Apparently, in the near future, the example of these companies will be followed by other public companies that will invest in bitcoin. According to many industry participants, this is just the beginning of the trend of adoption of cryptocurrency at the corporate level..
It is noteworthy that Larry Cermak, an analyst at The Block portal, called the news of Mode Global Holdings an excellent PR move, drawing attention to the company’s financial report for the first half of the year, according to which, at the end of June, the firm had 722,000 pounds sterling on its balance sheet. ($ 815 thousand). If we talk about 10% of this amount, it turns out that Mode bought only 6.7 BTC.
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