Two more companies hold Bitcoin as reserve assets

Earlier this month, Nasdaq-listed company MicroStrategy publicly announced that it would use Bitcoin as its main reserve asset (with an allocation of $250 million). Now, this trend has spread to more companies. Recently, Canadian graphics solutions company Snappa and food joint chain Tahinis also announced that they have allocated Bitcoin as their company reserve assets.

| Snappa allocates a large amount of Bitcoin as cash reserves

On August 24, Snappa founder and CEO Christopher Gimmer published a blog post announcing that his company would allocate a considerable portion of its cash reserves to Bitcoin.

The article mentioned that Snappa started buying Bitcoin in March this year. The company's decision to use Bitcoin as a reserve asset was not an impulsive decision, but after spending hundreds of hours studying Bitcoin's underlying protocol and all the game theory behind it, it concluded that Bitcoin is a reliable and high-quality savings technology.

Snappa said the purpose of investing in Bitcoin is to preserve company earnings and profits with a currency with a fixed supply. The article pointed out that the Canadian dollar and the US dollar are setting the stage for massive inflation as governments continue to print money and slash interest rates.

Snappa’s partner bank cut the interest rate on its “high-interest” savings account to 0.45% earlier this year. Therefore, it is necessary to convert Snappa’s free cash reserves into Bitcoin, as the purchasing power of this asset will not be reduced by inflation. This will help the company “scale up and generate more and more free cash flow.”

| Tahinis Restaurant uses all cash reserves in Bitcoin

Canadian restaurant Tahinis has also allocated all of its cash reserves to Bitcoin. On August 18, 2020, the restaurant tweeted, "We have converted all of our cash reserves used for savings into Bitcoin."

In a tweet, the restaurant owner explained that it was difficult to keep the restaurant profitable during the COVID-19 pandemic, especially since restaurant employees were reluctant to go to work due to the benefits of "government assistance programs", and these programs greatly increased cash reserves and the company's wealth could be diluted by printing money.

The restaurant founder said that he is a Bitcoin investor and has been gaining a deeper understanding of the cryptocurrency industry. He believes that "Bitcoin is a truly free savings technology that can store wealth across time and space. Since Bitcoin provides a better storage alternative, in the next few years, the company will use Bitcoin as a cash reserve, and in the absence of the need to use legal currency, the company will choose to keep this strategy forever."

Source: Blockchain Headlines