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The price of Bitcoin has reached a peak at the end of 2020. This bullish episode did not go unnoticed in a rather moribund economic context. Since then, the price of Bitcoin seems to have stabilized. However, many significant players continue to invest in Bitcoin. For them, the price of Bitcoin will continue to rise! Take the recent example of BIGG Digital Assets, a significant Canadian crypto company.
BIGG Digital Assets is a Canadian company specializing in the provision of cryptos services. In particular, the company owns the Netcoins exchange platform as well as BIG (Blockchain Intelligence Group), a firm specializing in the development of blockchain technology.
On December 8, 2020, the company issued a press release announcing that it had acquired an additional 40 bitcoins. The company purchased these 40 BTCs at a price of 24,854 Canadian dollars or approximately $19,000. In total, the transaction, therefore, amounted to 994,160 Canadian dollars or $780,000.
BIGG Digital Assets is not in its infancy. Indeed, the company has long since opted for crypto for its cash flow. The company began investing in Bitcoin as early as 2015. Thus, with this latest transaction to date, the company’s cash position is approximately 189.5 Bitcoin, which represents a valuation of approximately $3.7 million (taking the share price at the time of writing).
“We strongly believe in the future of Bitcoin, in its ability to store value and in the potential of its price” the company declared after the purchase.
BIGG Digital Assets’ strategy is not unlike that of other significant players in the field. Recently, for example, the publisher Microstrategy has also made a name for itself by massively increasing its investment in bitcoins.
In August and September, the company invested 330 million euros in Bitcoin. Then, despite the explosion in the price of Bitcoin, the company pursued its “Bitcoinist” strategy by purchasing 2,574 additional BTCs for a total of 51 million euros. With these purchases, Microstrategy is now sitting on capital equivalent to 40,824 BTC, the largest reserve of Bitcoin for a listed company. And Microstrategy does not seem to want to stop there. Indeed, on Monday, December 06, 2020, the CEO announced that the company was selling $500 million in bonds to buy more Bitcoins.
Recently also, Cypherpunk Holdings, a Toronto-based company has sold all its holdings in Ethereum to buy bitcoins.
The strategic choice of these major players to strengthen their bitcoin cash position is a strong signal to investors. Indeed, even after an upward episode, it is interesting to see that specialist companies continue to strengthen their bitcoin capital. This is a sign of their confidence in Bitcoin’s potential and the future evolution of its price.