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NexTech AR dips feet in crypto waters with $2 million Bitcoin buy

Saudu Clement
Saudu Clement

Vancouver-based augmented reality firm, NexTech AR, has indicated its interest in Bitcoin. This is coming amidst the frenzy of institutional investors buying the digital gold.

The company in a press statement issued on December 30, revealed its plans to commit an initial $2 million to buy bitcoin. The purchase will be made from NexTech’s treasury funds. For some context, the firm had about $12.79 million cash on hand as of September 30. This means that a $2 million investment in Bitcoin will be worth approximately 15.6% of the company’s on-hand cash holdings.

Speaking on its move to buy bitcoin, CEO of NexTech AR, Evan Gappelberg said:

Our investment in Bitcoin is part of our new capital diversification and allocation strategy with the intent to maximize long-term value for our shareholders.

He went further to recognize bitcoin as a long-term store of value and an “attractive investment asset” with more ROI potential than holding cash. He noted:

Bitcoin is a digital version of gold which has a total market capitalization of $10 trillion versus Bitcoin’s total market capitalization of only $500billion. We think that as part of the digital transformation a paradigm shift to digital gold is underway and as Bitcoin is seen more and more as a store of value, just like gold, it will catch up to gold.

As 2020 draws to a close, Bitcoin and Ethereum have witnessed institutional adoption like never before. MicroStrategy, Square, PayPal, MassMutual, and a host of big-money players have all had one dealing or the other with Bitcoin.