SynBiotic SE, a cannabis company listed on the Düsseldorf Stock Exchange, announced on Tuesday its decision to invest in Bitcoin, becoming the first German public company to do so.
The company justified that its decision was backed by the excessive increase in money supply in both the euro and USD zones, which raised the concerns of a massive devaluation of fiats.
“Our decision focused less on price fluctuations than the risk of devaluation of euro and dollar,” SynBiotic SE CEO, Lars Müller explained. “Bitcoin is the exact antithesis of traditional currencies: its volume is limited to 21 million units. This limit is fixed and inviolable, which the cryptocurrency‘s decentralized organization and the blockchain‘s tamper-proof nature in turn guarantees.”
“For this reason, we have more long-term confidence in bitcoin than in euros or dollars, where a central institution, influenced by politicians, can expand the money supply immeasurably.”
The company, however, did not reveal any absolute amount or what percentage of the cash reserve it is going to invest in the Bitcoin.
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The trend of adding Bitcoin to the balance sheet was started by MicroStrategy, a business analytics company, which is still purchasing a massive amount of Bitcoin. Finance Magnates recently reported on its intentions to receive $600 million in loan for Bitcoin purchases.
However, the most notable investment was Tesla’s, which pumped the prices of the original digital currency after its $1.5 billion investment. Now many other companies are considering getting exposure to Bitcoin: a survey found out 5 percent of CFOs are in favor of Bitcoin investments.
Mixing Cannabis and Crypto
SynBiotic is involved in buying and building strategies in the cannabis industry, which already saw massive hype in the past few years. Now, crypto exposure can boat these company stocks even higher.
The impact of the announcement can be already seen in the market as the SynBiotic stocks gained over 4.6 percent in the ongoing trading session.
“The cannabis sector, in particular, has had very positive experiences with bitcoin as a simple and digital means of payment. Several SynBiotic subsidiaries already accept payments in bitcoin in addition to payments in euros,” Müller added.