First publicly traded German company buys bitcoin

[hugeblack]

SynBiotic SE CEO Lars Müller says of the decision:

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. This limit is fixed and inviolable, which the cryptocurrency‘s decentralized organization and the blockchain‘s tamper-proof nature in turn guarantees. For this reason, we have more long-term confidence in bitcoin than in euros or dollars, where a central institution, influenced by politicians, can expand the money supply immeasurably. In addition, the cannabis sector in particular has had very positive experiences with bitcoin as a simple and digital means of payment. Several SynBiotic subsidiaries already accept payments in bitcoin in addition to payments in euros

Source ---> https://www.benzinga.com/markets/cannabis/21/02/19682496/synbiotic-se-becomes-the-first-publicly-traded-company-in-germany-to-hedge-against-euro-currency

I am not sure if this is the first time for a company listed in Germany to hedge against the devaluation of the euro using bitcoin. The source says that.
We may see more companies that may be encouraged and invest 1% of their available cash as a hedge against increase in money supply in both the euro and USD zones

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[bassbity]

we look forward to how they implement this policy to protect the euro from inflation. We cannot say that this will go smoothly, so that they can discuss the pros and cons of the various layers of government. Personally, I will support it to make it work as expected. However, so far this statement has not been fully responded to by the central bank. This company must pay attention to all aspects in the future if the bank is going to lock its accounts.

[HeRetiK]

At the current market cap of ~ EUR 70MM,- [1] that's barely a small cap stock, wake me up when we have a DAX 30 company on board

Nonetheless it's really interesting to see more and more private companies building up Bitcoin reserves at this stage of Bitcoin's growth. I wonder if that means that the time of crazy spikes and sudden drops is finally over?


[1] https://www.investing.com/equities/synbiotic-se

[BITCOIN4X]

This trend is still continuing and maybe we will see a big spike in the price of bitcoin due to increased demand. I assume that 2021 is a very extraordinary year for bitcoin and hope many other private companies also announce to protect their corporate money in bitcoin. Meanwhile, I read the news that gold investor are also thinking about switching to bitcoin as the price of gold has fallen. $50K has been exceeded, what's next ?

[dothebeats]

It feels like each company with the capacity to spend spare $ of their reserves would be buying bitcoin just to bet that it will be worth more than what they bought it for in the future. Still some net gain for their idle reserves that are otherwise just staring there with nothing to do and nowhere to go. That seems to be what's happening for other new companies that are joining in the trend of buying bitcoin for the company, and that's not even bad considering that at the least they are starting to be a part of the ecosystem.

[Coyster]

We may see more companies that may be encouraged and invest 1% of their available cash as a hedge against increase in money supply in both the euro and USD zones

I'm positive more companies will, the thing is, traditional institutions are still struggling to regain normalcy as a result of the pandemic, and it's prolly going to take quite a lot of time, within which there will likely be inflation, devaluation and they'll have to print more money, having said that, Bitcoin on a bull run right now is totally unaffected by all that, it's only normal for individuals and now institutions to look for a hedge.

It's much better to convert your reserve assets to Bitcoin, avoiding devaluation via that process, and in another way, also be making profits as Bitcoin price appreciates, that's what this companies are doing atm, the big question now is if this Influx changes the cycle were Bitcoin experiences sporadic plunges after a bull run.

[mk4]

I wonder if that means that the time of crazy spikes and sudden drops is finally over?

Ehh. While it's totally unlikely, I'd like to take the optimistic approach and think that price drops will probably be ever so slightly smaller than the ones we had in the past. Companies and institutional investors aren't the types of investors to panic sell assets when prices drop(not like most of retail do). But yea, companies and institutional investors are still the minority so huge drops are still to be expected.

[Poker Player]

How I love this news. Every now and then we are seeing another new company join in buying bitcoin/accepting bitcoin or at least considering it. It doesn't matter if they are small companies. There is no stopping this. We will have price drops and FUD at times but we are on our way to bitcoin normalization. In a few years, Bitcoin it's going to go from being a weird thing that sounds like fraud and the like to an important element of our society.