Cannabis Company Buys Bitcoin As Hedge

 

Over the years, Bitcoin has been able to win over some powerful investors to the network as the digital asset continues to make huge strides. Some weeks ago, Elon Musk announced that his company, Tesla, made a $1.5 billion investment in the leading asset. Before that, major investment and hedge funds announced their investment in the asset, with Microstrategy topping up its Bitcoin holding since last year.

Even though things are looking like the dollar would fall, major investors see Bitcoin as a hedge in case that happens. In another twist as a hedge against the Euro’s fall, a Germany-based cannabis company has announced that it has invested in Bitcoin.

SynBiotic says it didn’t buy Bitcoin because of its price surge

With this investment, the company in question, SynBiotic SE, would become the first company to be publicly listed in the cannabis sector. In their recent statement, the company mentioned that it didn’t buy the digital asset because of the massive rise in price as it was only concerned about its wealth, hence using Bitcoin as a hedge.

According to the firm’s CEO, Bitcoin is the perfect hedge against inflation because it has a supply cap of 21 million. The asset is on a blockchain, which shows that it has safe and tamper-proof guarantees from the fixed cap. The recent decline in fiat currencies is a major source of worry for investors in the financial world. Most of them are now running to several digital assets, just like SynBiotic SE.

According to a recent study, top currencies such as the United States dollars and the Euro are now facing tough times in the market due to the recent massive influx of supply into their respective economies. Also, there are rumors that the supply of cash is being dictated by wealthy billionaires making a case for the immeasurable cash supply.

Bitcoin Group SE clinches milestone of €100 million in Bitcoin investment

In his argument, Muller mentioned that Bitcoin had served them well over the past few years as they are now using it to make payments. He mentioned that many of their subsidiaries are now willing to accept Bitcoin as payment for services at all their outlets. Following the announcement, the cannabis company’s stock saw a massive rise in both the Dusseldorf stock exchange and the Deutsche Borse Xetra platforms that it is listed on.

The stock saw a massive move to reach a figure of $32.58 that has not been seen in the last three weeks. With this, one can argue that SynBiotic is following the initiative that Microstrategy and other high-value companies launched. With most of them pooling in their funds, it is only a matter of time before the digital asset reaches another high figure.

Bitcoin is presently trading around the $51,000 mark after the digital asset broke above the psychological level of $50,000 yesterday. However, SynBiotic SE is not the first company to bet on digital assets in the region. A previously listed company on Xetra Bitcoin Group SE recently purchased the asset to reach a milestone figure of €100 million.