Cathie Wood, CEO of ARK Investment Management, said she believed more companies will top up their balance sheets with bitcoin.
At a saturday interview With Yahoo Finance, the Exchange Traded Fund (ETF) magnate and outspoken Bitcoin proponent said big companies had asked them if they should follow Square. Inc’s leadership. Square is one of the few public companies that invests in Bitcoin as an inflation hedge strategy.
“I think we’ll hear from more companies adding this protection to their balance sheets,” she said, “especially from technology companies who understand and are familiar with the technology.”
Their predictions have resulted in returns faster than ARK’s Space ETF. On Monday, the Bitcoin miner Marathon Patent Group bought $ 150 million worth of Bitcoin. By nature, the company is perhaps best placed to understand the nuances of bitcoin and blockchain technology.
However, recent fluctuations in the price of the market-leading cryptocurrency have also exposed the danger that inexperienced companies are trying to bet on Bitcoin Treasuries.
The day before Wood’s interview, virtual reality company NexTech AR dumped its 130 BTC treasury reserve, a “long-term” investment the Canadian company announced in late December. Executives were frightened by false media reports about so-called “double spend” for the Bitcoin blockchain.