Announced Tuesday, the AR company said it plans on making an initial investment of $2 million in bitcoin and may add more in 2021.
According to Coindesk, as of Sept. 30, the firm had C$16.39 million (US$12.79 million) cash on hand, making the investment nearly 15.6% of its available cash, assuming the $2 million investment is in U.S. dollars.
NexTech CEO, Evan Gappelberg said in a statement:
“Our investment in Bitcoin is part of our new capital diversification and allocation strategy with the intent to maximize long-term value for our shareholders.”
Gappelberg stated that the investment reflects his belief that bitcoin is a long-term store of value with more long-term appreciation potential than holding cash, which is now yielding 0.06%.
The CEO also described bitcoin as a “digital version of gold” which has a total market capitalization of $10 trillion versus bitcoin’s total market capitalization of $500 billion.