The United States SEC files reveal Globant IT Firm as the latest major company to buy Bitcoin. Keep in mind that Bitcoin and other cryptocurrencies had increased institutional adoption this year.
On a 25th May statement by SEC, the IT company announced its cryptocurrency purchases for quarter one of 2021. In Q1 of this year, the firm purchased crypto assets worth $500,000, mainly BTC.
The company had its cryptocurrency expenses and investments listed as an intangible asset. For that reason, the BTC purchases fall under the category of licenses, customer contracts, customer relations, and incomplete company agreements.
Globant admitted it lists BTC in the intangible category since the coins have no usefulness limit. Also, BTC is not a physical asset. Moreover, the firm declared that digital asset gains are unrecognized until you sell them.
Launched in 2003, Globant is an Information Technology conglomerate operating in Latin America. However, you can find its offices in the U.S and the U.K.
Nevertheless, the company did not declare the amount of cash invested in its Bitcoin stash despite admitting its involvement in Bitcoin dealings. However, the incoming Q 1 buys indicate that any Bitcoin purchase from February week 2 onwards would incur losses.
Also read:While multiple firms have invested in Bitcoin recently, most of them do not disclose their purchases. Bitcointreasuries reports that six public traded companies have losses on their Bitcoin acquisitions, as BTC declined drastically in the past weeks.
In April, Nexon, a Japanese gaming company, purchased BTC worth $100 million. The coin now values $67 million. Seetee, an Aker family firm, announced its $58.6 million BTC buy in March. As of today, BTC worth $44.9 million. On the other hand, Meitu saw its cryptocurrency holding shrinking to $36 million after announcing BTC purchases worth $49.5 by April.
Also, Brooker Group Financial firm lost $2 million after investing $6.6 million on Bitcoin.
From the above info, you will not deny that Bitcoin has had it hard in the financial market. Most companies that invested in BTC have witnessed losses. However, industry experts suggest things will normalize as it is cryptocurrencies’ nature to have wild swings.
Do you have any comments concerning BTC performance in institutions? Share that with us in the section below.
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