On the eve where we learned that payments giant PayPal is in the mood to acquire crypto custodian firm Curv, BitGo has revealed that it holds $250 million in bitcoin on its own balance sheet.
This, CEO Mike Belshe disclosed in a recent interview.
And it comes at a time when more and more companies are opening up about how many bitcoins they are in possession of. Companies like MicroStrategy and Square are going all in, and many others are following their lead.
It is not unusual for crypto firms to hold the same assets that they are selling to their customers, but this is part of the wave of institutional investment — a wave that has seen Bitcoin climb new highs.
According to Belshe, BitGo has had bitcoin on its balance sheet since 2014. And one of the first products that the company pursued that same year was a multi-sig, multi-user wallet that was designed in part for treasury management.
His words:
“I strongly recommend that companies invest heavily in bitcoin. I think the global pandemic has shown that some exposure to digital assets is actually a way to stabilize your business as opposed to destabilizing it.”
He points to insurance funds and pensions allocating 3% to 5% of their cash reserves to Bitcoin as a benchmark for other companies that are planning to add the original cryptocurrency to the balance sheet.
Particularly, for folks who are looking for a general hedge against the bond and stock markets.
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