The number of large traditional companies converting or thinking of converting their balance sheets into bitcoin is on the rise.
Due to this rise, Genesis, a subsidiary of Digital Currency Group, a New York-based venture capital company focusing on the digital currency market, launched a new service aimed at corporations interested in buying digital assets.
Bitcoin for corporations
The new service is called Genesis Treasury and it couldn’t have come at a better time. The price sentiment for bitcoin remains very bullish as institutions bet their megabucks on the digital asset.
Genesis CEO Michael Moro said corporations are starting to appreciate the fact that they need to hold some portion of their treasury in bitcoin.
“We’re now fielding calls and inbound inquiries from companies everywhere, trying to ask ‘how do I do this? And how can you help me,” said Moro.
“I wasn’t expecting publicly traded companies to call up, wanting Bitcoin on their balance sheets, but that’s exactly what’s happening.”
Moro further explained that corporations know that they need to buy bitcoin but they have little experience when it comes to taxation, accounting, custody, and legal issues that arise from holding digital assets.
Bitcoin is a better alternative
Corporations and institutional investors are increasingly viewing bitcoin as a better alternative to fiat currency.
“If you were to keep your treasury in U.S. dollars, that is one of those instruments that is pretty much guaranteed to lose value over time. Bitcoin is an alternative to that,” he remarked.
Corporations now see digital assets in a more positive light, a complete departure from their position a few years ago.
It was once considered to be irresponsible for a company to invest in bitcoin, but the tables have turned and the opposite is true.
“It is completely night and day in terms of the corporate sentiment toward bitcoin. I think people feel more comfortable with it,” he added.
Tesla joins the party
Electric carmaker Tesla announced today through an SEC filing that it bought bitcoins worth $1.5 billion for “more flexibility to further diversify and maximize returns on cash.”
A few days ago, Microstrategy’s “Bitcoin for Corporations” virtual summit attracted more than 8,000 attendees.
The appetite for bitcoin by corporations is growing and with companies like Tesla holding more than $1 billion in bitcoin, there is a potential that more companies will follow the same route.
Tesla’s news caused bitcoin to surge by more than 10%.