The Canadian publicly traded company NexTech announces the acquisition of $4 million of Bitcoin (BTC) for its cash.
NexTech, a publicly traded company, purchases $4M from Bitcoin (BTC)
NexTech buys Bitcoin
Vancouver-based, publicly traded NexTech AR Solutions converted $4 million of its cash into bitcoin. The company now owns 130 BTCs and plans to renew the transaction in 2021.
As at September 30, the company had $12.8 million in cash on hand, so this acquisition represents approximately 31.2% of its available cash.
The Company indicated that its investment in Bitcoin is part of its new diversification and capital allocation strategy announced on December 29, 2020, with the intention of maximizing long-term value for its shareholders.
Initially, the company was only required to convert $2 million from its cash reserve. However, the management team decided to double the transaction a few days later.
Evan Gappelberg, CEO of NexTech, said :
„This doubling reflects our strong belief that Bitcoin is an excellent long-term value pool and an attractive investment asset with long-term appreciation potential.
NexTech AR Solutions specializes in virtual and augmented reality for e-commerce, education and events.
Mogo leads the way in Canada
The CEO seems convinced by the new acquisition of his company and announces a new paradigm, he explains in the press release :
„At the dawn of 2021, I believe that the digital transformation has created a paradigm shift in the diversification of capital in favor of „digital gold“ or Bitcoin. As more institutional investors adapt to this new paradigm, they will have an incentive to diversify their portfolios in favor of BTC. »
NexTech appears to be following in the footsteps of another Canadian company called Mogo. This company decided to convert 1.5% of its cash reserve into Bitcoin (BTC) in December.
Greg Feller, president of Mogo, made a relatively similar speech, explaining that Bitcoin represents an attractive investment for Mogo shareholders with „significant“ long-term appreciation potential.