MicroStrategy publicly announced its adoption of Bitcoin as a primary reserve asset earlier during the month. The trend has now caught up on more firms.
Canadian businesses Snappa, and Middle-Eastern food joint chain, Tahinis announced the allocation of their cash reserves to BTC.
Canadian Firms Snappa Allocate ‘Significant’ Cash Reserves to Bitcoin
In a blog post published yesterday, Christopher Gimmer, founder and CEO of graphics solution provider firm, Snappa announced that his company has a ‘significant percentage of its cash reserves in Bitcoin.’
According to the article, Snappa began accumulating BTC in March this year. The decision to hold Bitcoin as a reserve asset wasn’t an impulsive one.
Gimmer and the team decided to do it “after falling down the rabbit hole and spending hundreds of hours studying the underlying protocol and all the game theory behind it.”
He now believes that Bitcoin is ‘a far superior savings technology’ available to mankind, but why?
An Inflationary Monetary System That Reduces The Value of Currency
The Snappa boss, while explaining the reason behind the company’s ‘Bitcoin move,’ pointed out why it is important to save earnings/profits in a currency that has a fixed supply.
The Canadian and US dollars do not fit that picture due to due to constant money printing and slashing of interest rates, paving the way for massive inflation. Chris commented that his company’s partnering bank “slashed the interest rate on our “high interest” savings account to 0.45% earlier this year.”
And so, it was super essential to plug Snappa’s free cash reserves into Bitcoin, as the asset’s purchasing power won’t be reduced adjusting for inflation. This would help the company ‘scale and produce growing amounts of free cash flow’.
A Middle-Eastern Restaurant Also Joined the BTC Bandwagon
Along with Snappa, Canadian restaurant Tahini’s has also allocated its cash reserves (all of it) to Bitcoin.
As a small company that started in London Ontario Canada we operate 4 corporate locations and 3 Franshise locations about to open up in Ontario. We just converted our entire cash reserves that were originally used as savings into #Bitcoin
Time for thread 👇🏽👇🏽👇🏽
— Tahinis Restaurants (@TheRealTahinis) August 18, 2020
In the tweet thread, the owner explained how difficult it was to keep the restaurant afloat after the COVID-19 lockdown. Especially when the restaurant staff was not willing to turn up for work, owing to benefits received from ‘government assistance programs.’
The programs inflated their cash reserves, but in the eyes of the owner held little to no value. The Tahini’s founder added that they had been a Bitcoin investor and constantly kept learning about and understanding the cryptocurrency in depth.
Eventually, Tahini’s founder realized that Bitcoin is ‘a true free savings technology that stores wealth across time and space.’ That’s when they, as a company, they decided to go ‘all in’ in BTC “as it offers a much better alternative to saving cash.”
they also don’t intend to stop the process:
We will continue to do that over the coming years and maybe forever if we don’t have a need for the fiat.