Tech firms are showing inclination towards crypto purchases
Reddit and Block both showed positive developments around crypto
MicroStrategy, Tesla also purchase BTC, ETH among other cryptocurrencies
The current crypto market cap stands close to $2 trillion with BTC trading at $51,017
Photo Credit: Pixabay/ Dean Crosby
2023 brought the crypto sector face to face with regulatory and macro-economic challenges – that kept the price points of majority cryptocurrencies relatively low. Despite the volatility that the sector witnessed last year, several corporate firms did not lose hope on their crypto engagements. Social networking platform Reddit and Jack Dorsey's fintech firm Block are two names that have recently disclosed information related to their BTC holdings and investments, which yielded profits for both.
The current crypto market cap stands close to $2 trillion (roughly Rs. 1,65,78,200 crore) with Bitcoin currently trading at $51,017 (roughly Rs. 42.2 lakh). The crypto sector has seen a rise in valuation so far in 2024. Bitcoin was trading at $43,064 (roughly Rs. 35.8 lakh) in December last year.
In fresh filings, both Reddit and Block have revealed their investments in BTC, ETH, and other cryptocurrencies.
In a filing with the US Securities and Exchange Commission (SEC), Reddit said it has purchased Bitcoin and Ether from the excess cash it managed to save. While the platform has not exactly disclosed the exact worth of Bitcoins it purchased, the filing showed that Reddit had managed to hold $1.3 billion (roughly Rs. 10,778 crore) in cash by the time it wrapped up the 2023, a report by Coindesk said on Friday, February 23.
With this, Reddit has become one of the few companies alongside MicroStrategy and Tesla that has directly invested its cash holdings into purchasing BTC and ETH.
Jack Dorsey, the founder and former CEO of Twitter (now X), disclosed his fintech firm Block's fourth quarter earnings on Thursday. The filings noted that Block held 8,038 BTC which was worth $340 million (roughly Rs. 2,818 crore) on December 31, 2023. At present, the value of these tokens stands at $409 million (roughly Rs. 3,398 crore).
Dorsey also said that Block managed to churn $66 million (roughly Rs. 547 crore) through the sale of BTC tokens through its subsidiary, the Cash App – clocking a 90 percent increase from 2022.
“The year-over-year increase in Bitcoin revenue and gross profit was driven by an increase in the average market price of bitcoin as well as a benefit from the price appreciation of our bitcoin inventory during the quarter,” Block said in is filing as per a different report by Coindesk.
Crypto-focused merchant bank Galaxy Digital Holdings, crypto brokerage Voyager Digital, and Bitcoin mining company Marathon Digital are among other firms that have investments in crypto.
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