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Companies start to offer part of their employees’ salary in crypto

Photo of: Joseph Stone
by Joseph Stone
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The software company Sequoia Holdings now allows its employees to receive part of their compensation in the form of cryptocurrencies. Employees can choose between ETH, BTC and BCH.

MicroStrategy is now a software development specialist that is heavily invested in Bitcoin. Another software publisher is also taking a step towards the adoption of cryptocurrencies. But not as an investor.

Software expert Sequoia Holdings has announced that it will now offer employees the opportunity to earn a salary in crypto. But not all of their salaries. Without specifying, the publisher mentions a “portion” of this remuneration.

“Many of our employees are enthusiastic supporters of cryptocurrencies. And we are pleased to help them gain exposure to this trillion dollar asset class,” says CEO Richard Stroupe.

Stroupe sees this option as a “new benefit” for his staff. Sequoia Holdings has chosen to select three reference cryptocurrencies for this new salary program.

The part of the salary paid in the form of crypto can be paid via Bitcoin, Bitcoin Cash or Ether, the native token of the Ethereum blockchain. However, there is no way for the editor to become a crypto specialist.

“The company has teamed up with a third-party payroll processing company to withhold taxes and convert the rest into crypto currency. It will be kept in a digital portfolio managed by the payroll company,” he explains.

And to justify this new salary, the American company takes the example of a top sportsman, Russell Okung. The US soccer player was recently making headlines by earning 50% of his salary in Bitcoin.

Sequoia Holdings is therefore offering its employees the opportunity to convert their salaries into investments. Cryptocurrencies have emerged as a major alternative to traditional investments such as stocks and bonds,” says Sequoia’s CEO.

“We are proud to give our team members the opportunity to easily invest in cryptocurrencies and build up their savings,” he concludes. However, the current trend in the crypto market could make such an option a significant risk.

Indeed, several institutional experts are warning against a strong decline in Bitcoin, as are JPMorgan and Guggenheim. The BTC would thus constitute “the least reliable coverage in times of acute market stress”. Before converting one’s salary into cryptocurrencies, it may be preferable to wait for prices to stabilize.