Following its board approval of a Bitcoin accumulation strategy, the Canadian technology firm, DMG Blockchain Solutions, said it recently purchased approximately 220 BTC, worth around $12.8 million at the time of writing.
According to an announcement today, the purchase was made earlier this week via an unnamed cryptocurrency exchange, as part of an effort to increase its Bitcoin holdings.
The firm, which intends to continue increasing its portfolio in the long term by mining and holding the popular cryptocurrency, stated that it would periodically purchase BTC based on market conditions and corporate opportunities.
Notably, DMG Solutions considers Bitcoin as a store of value and will be using funds set aside for future capital deployments to acquire more of the digital asset.
Sheldon Bennett, DMG’s COO, noted that the investment would help convert the firm’s cash reserve into BTC, as it hopes to make the cryptocurrency its “treasury currency of choice.”
Bennett added that it believes more firms would want to acquire BTC as a hedge against inflation in the future, so it has decided to be among the early investors that will benefit from the mass adoption.
Commenting on the development, Daniel Reitzik, CEO at DMG said BTC is designed to eliminate the flaws associated with traditional payment methods – fiat.
According to him, while large cash holders face the risk of value depreciation due to economic woes, Bitcoin does not have such a challenge and its demand has continued to spike, leading to a surge in price.
“We believe Bitcoin has and will continue to have greater value than traditional currencies such as the US dollar,” Reitzik added.
Corporate Investors Adopting Bitcoin
DMG is not the first corporate investor to directly purchase BTC since the beginning of the year.
The asset’s quality as a hedge against inflation has made it the choice investment for corporate and institutional players, with large amounts of funds being thrown into the market weekly.
Earlier this year, popular electric car manufacturer Tesla announced a groundbreaking investment of $1.5 billion.
DMG’s Mining Business
DMG is one of the largest Bitcoin miners based in Canada. Last year, the firm sought to export electricity from the United States to its mining farm by applying with the U.S. Department of Energy.
However, various people and groups, including Public Citizen, a non-profit advocacy organization, slammed the firm’s move.
Public Citizen noted then that since cryptocurrency mining requires a high amount of electricity, approving DMG’s request could be harmful to residents, the climate, and the environment.
