The publicly traded Canadian company NexTech announces the acquisition of $ 4 million of Bitcoin (BTC) for its treasury.
NexTech buys Bitcoin
The company NexTech AR Solutions Vancouver-based publicly traded converted 4 million of its cash in bitcoin. The company now owns 130 BTC and plans to renew the operation in 2021.
As of September 30, the company had $ 12.8 million in cash, so this acquisition represents approximately 31.2% of its available cash .
The company said 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 only needed to convert $ 2 million from its cash reserve. However, the management team decided to double the operation a few days later.
Evan Gappelberg, CEO of NexTech, said:
„This doubling reflects our strong belief that Bitcoin is an excellent long-term store of value and an attractive investment asset with the potential for long-term appreciation.“
NexTech AR Solutions specializes in virtual and augmented reality for e-commerce, education and events.
Mogo leads by example in Canada
The CEO seems convinced by the new acquisition of his company and announces a new paradigm, he explains in the press release :
„As we head into 2021, I think digital transformation has created a paradigm shift in capital diversification in favor of ‚digital gold‘ or Bitcoin. As more and more institutional investors will adapt to this new paradigm, they will be encouraged 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, Chairman of Mogo, delivered a relatively similar speech as he explained that Bitcoin represents an attractive investment for Mogo shareholders with “significant” long-term appreciation potential .