Infrastructure company BitGo for digital access holds $ 250 million bitcoin on his balance sheet, CEO Mike Belshe revealed to CoinDesk in a recent interview.
The information comes at a time when more crypto companies are reopening their own bitcoin holdings. It is not uncommon for crypto companies to have the same assets that they sell to their customers, but a new wave of institutional investments has the same companies sharing information about their own investments in cryptocurrencies.
BitGo has had bitcoin on its balance sheet since 2014, Belshe said. One of the first products that BitGo pursued the same year was a multi-user wallet, which was used in part for financial management, he added.
At the same time as bitcoin was placed in the treasury, it became trendy in 2020 MicroStrategy, Square, MassMutual and second, it’s an asset diversification strategy that BitGo had seen customers practice long before the bull run.
“It has taken longer for the industry to develop than we thought it would,” Belshe said.
BitGo’s revelation comes about a week after the leading crypto exchange Coinbase revealed in a blog post that it has had bitcoin and other assets on the balance sheet since 2012.
When BitGo added bitcoin in its own state, Belshe argued that the company should have the same exposure to the asset that customers took on.
“A company that supports companies that take a stand on something other than US dollars for their investment money is a very controversial thing,” Belshe said. If the founders came to the investors and said, “Hey, I would like to take the cash you gave us and put in gold, the answer would be, ‘No, you should not do that.’ “
At that time, BitGo developed a liquidity policy that looked at what would happen if the digital assets in the Treasury were to be zeroed and has maintained a 24 to 36 month cash flow in addition to its digital assets.
“I strongly recommend that companies invest heavily in bitcoin,” said Belshe. “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.”
Belshe points to insurance funds and pensions that allocate 3% to 5% of their cash reserves to bitcoin as a benchmark for other companies considering adding bitcoin to the balance sheet. While interest rates remain low, Belshe expects investors to continue pouring into high-yield assets such as bitcoin for some time.
“In general, what people expect is quite gloomy [bond] market for a while, says Belshe. “The other place you can go right now is the stock market, but if these bond yields rise, the stock markets will hit … so I think people are looking for a general hedge against both markets.”