German Cannabis Firm Cites Cash Inflation as Reason for BTC Investment
German cannabis firm SynBiotic SE follows Tesla, MicroStrategy, and others in Bitcoin (BTC) allocation from cash balances because of “legitimate concern about a massive devaluation of fiat money.”
Corporate Bitcoin Investment Spans Globe
SynBiotic SE claims to be the first German listed stock to add BTC to its balance sheet. Since the announcement yesterday, the firm’s stock price increased by 8% from $25.8 to $27.2 this morning.
The company’s CEO Lars Müller cited their concerns over inflation in the euro along with Bitcoin’s limited supply as the reason for the investment decision. Müller noted in the announcement:
“Our decision focused less on price fluctuations than the risk of devaluation of euro and dollar. Bitcoin is the exact antithesis of traditional currencies: its volume is limited to 21 million units.”
SynBiotic’s subsidiaries reportedly accept Bitcoin as a means of payment. The cannabis group produces cannabinoids and cosmetic products and also works on drug and dietary supplement development.
The total market capitalization of the company is around $70 million. SynBiotic comes under the “micro-cap” category of companies, which is composed of mainly penny stocks.
While their allocation may not cause significant inflows into BTC like Tesla or MicroStrategy, it is still representative of a trend that companies are adopting world-wide. Further, the current hype in the asset is also helping firms with short-term pumps.
Disclosure: The author held Bitcoin at the time of press.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Source: Read Full Article
