SynBiotic SE became the first cannabis-based public firm in Germany to invest an undisclosed amount in Bitcoin (BTC). Hence, the firm has started to shift some of its free liquidity into BTC.
German Cannabis Company Bets on Bitcoin Instead of the Euro
Munich-based SynBiotic SE has announced it is going to invest in Bitcoin to hedge against the devaluation of the Euro. However, the investment made the firm to become the first publicly traded firm in Germany within the cannabis sector.
Moreover, the firm made the decision not based on price speculation. But instead on a plan to hedge against declining fiat currency.
SynBiotic SE CEO Lars Müller said,
“Bitcoin is the exact antithesis of traditional currencies: its volume is limited to 21 million units. This limit is fixed and inviolable, which the cryptocurrency‘s decentralized organization and the blockchain‘s tamper-proof nature in turn guarantees.”
Added to this, the firm says it has more long-term confidence in Bitcoin than in fiat. Even more, currencies such as the Euro or the US Dollar, not only centralized. But also influenced by politicians who can grow the money supply vastly.
As per Müller, the cannabis firm has very positive experiences with using Bitcoin for payments, with several SynBiotic divisions already accepting cryptocurrency. In addition, SynBiotic stock is traded on the Düsseldorf Stock Exchange and also on Deutsche Börse’s Xetra electronic exchange platform.
Furthermore, many corporates and institutions are considering investing part of their reserve cash in Bitcoin. Recently, Tesla purchased $1.5 worth of BTC which triggered massive corporate investors to buy BTC.
Also, public-listed business intelligence firm MicroStrategy has acquired over 71,000 Bitcoins. With over $1.2 billion in Bitcoin investments till now. More so, MicroStrategy proposed investing another $600 million into Bitcoin. Apart from corporates, institutions like Grayscale added 3500 Bitcoins to its Bitcoin Trust last week.