We keep seeing cases of institutions and largescale enterprises purchasing bitcoin and other forms of crypto to ensure their portfolios remain diverse and they can protect themselves against inflation as the U.S. dollar is subjected to weak economic conditions. After firms like MicroStrategy, Square and Tesla have all bought bitcoin, it looks like DMG Blockchain Solutions is the latest company to join the bitcoin-buying ranks. DMG Blockchain Solutions Will Mine and Buy What’s unique about this situation is that DMG Blockchain Solutions is a crypto-based company, and the idea that it’s buying bitcoin now is something of an enigma in the sense that we haven’t viewed many other bitcoin companies purchasing the asset they seem to tout so often. MicroStrategy, for example,
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We keep seeing cases of institutions and largescale enterprises purchasing bitcoin and other forms of crypto to ensure their portfolios remain diverse and they can protect themselves against inflation as the U.S. dollar is subjected to weak economic conditions. After firms like MicroStrategy, Square and Tesla have all bought bitcoin, it looks like DMG Blockchain Solutions is the latest company to join the bitcoin-buying ranks.
DMG Blockchain Solutions Will Mine and Buy
What’s unique about this situation is that DMG Blockchain Solutions is a crypto-based company, and the idea that it’s buying bitcoin now is something of an enigma in the sense that we haven’t viewed many other bitcoin companies purchasing the asset they seem to tout so often.
MicroStrategy, for example, is a software firm, while Tesla manufactures electric cars. Square is probably the closest thing to a blockchain or bitcoin institution buying crypto, though it would be incorrect to label Square as a legitimate bitcoin firm. It is a payment solution that incorporates the digital currency.
DMG Blockchain Solutions has just announced that it’s board of directors has approved a new plan to not only begin mining cryptocurrency, but also accumulate more units of the world’s primary digital currency by market cap. This, the company says, will significantly boost the company’s “treasury holdings” and portfolio. Since last Monday, the firm has been buying as much as 220 BTC at a time through various exchanges and trading platforms.
COO of the firm Sheldon Bennett explained in a recent interview:
Buying bitcoin helps to efficiently diversify DMG’s monetary holdings away from cash, and over time, we intend to make BTC our treasury currency of choice. We are well connected in this industry and therefore know that many more companies will shortly begin to add bitcoin to their balance sheets as a hedge against the ongoing dilution and inflation. We believe this will contribute to an even stronger bitcoin price in the coming weeks and months, from which DMG is positioned to significantly benefit.
Boosting the Treasury
Over time, the currency will continue to make purchases of BTC units already in circulation, but it will also boost its mining operation and hold all new bitcoins in its treasury as it prepares to transition fully away from fiat. CEO Daniel Reitzik explained:
Just as an individual or corporate investor might hold large cash positions, so they might face significant risk of loss of value due to inflation alone. However, that risk doesn’t exist with bitcoin, which is a deflationary asset by default, with an ever-increasing demand for this superior cryptocurrency. This demand is mainly driven by rapidly growing institutional adoption and an increasingly large demand by retail investors. Coupled with a drastically declining supply of new coins, we expect continuously rising bitcoin prices, which is exactly what we’ve been witnessing in the last few months.