German Cannabis Firm Cites Cash Inflation as Reason for BTC Investment
A German public listed company has started investing in Bitcoin due to "massive devaluation" of fiat currency.
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German cannabis firm SynBiotic SE follows Tesla, MicroStrategy, and others in Bitcoin (BTC) allocation from cash balances because of “legitimate concern about a massive devaluation of fiat money.”
Corporate Bitcoin Investment Spans Globe
SynBiotic SE claims to be the first German listed stock to add BTC to its balance sheet. Since the announcement yesterday, the firm’s stock price increased by 8% from $25.8 to $27.2 this morning.
The company’s CEO Lars Müller cited their concerns over inflation in the euro along with Bitcoin’s limited supply as the reason for the investment decision. Müller noted in the announcement:
“Our decision focused less on price fluctuations than the risk of devaluation of euro and dollar. Bitcoin is the exact antithesis of traditional currencies: its volume is limited to 21 million units.”
SynBiotic’s subsidiaries reportedly accept Bitcoin as a means of payment. The cannabis group produces cannabinoids and cosmetic products and also works on drug and dietary supplement development.
While their allocation may not cause significant inflows into BTC like Tesla or MicroStrategy, it is still representative of a trend that companies are adopting world-wide. Further, the current hype in the asset is also helping firms with short-term pumps.
Disclosure: The author held Bitcoin at the time of press.