The co-president of the crypto investment bank is confident that it is only a matter of time before more companies invest.
In the past few months, large companies like MicroStrategy and Tesla have made massive investments in Bitcoin ( BTC )
However, most of the business world is not yet jumping on this trend, with Galaxy Digital Co-President Damien Vanderwilt seeing security concerns and tax issues as the main obstacles.
“When I think of the discussions we are having with corporations and institutional investors who are interested in investing in cryptocurrencies, these customers name security as the first major problem area. You wonder whether the assets they buy are safe and can be kept safe, „said the co-president of the crypto investment bank in an interview with Bloomberg.
„The second major problem area, which especially corporations bring up to us, is the tax treatment, because according to the GAAP accounting regulations in the USA, Bitcoin is classified as an intangible asset“, as Vanderwilt continues
Bloomberg notes that only „5% of finance directors“ in large corporations are considering buying Bitcoin right now. This number comes from a recent study by the market research institute Gartner, which surveyed 77 finance directors in February. „Only 5% of the participating finance directors whom we surveyed in February 2021 stated that they plan to purchase Bitcoin as an asset for their company in 2021,“ according to a statement on the survey.
MicroStrategy, MassMutual, Tesla and Square have all recently invested several million dollars in Bitcoin. MicroStrategy alone has invested more than $ 1 billion in total. Only recently, the software manufacturer added another billion . Square also recently bought an additional $ 170 million in Bitcoin. The payment service provider had already invested US $ 50 million last fall.
The companies are basically ready, which is why Vanderwilt is ultimately confident that the trend towards investing in Bitcoin will consolidate in the future: „These problems are not insoluble, nor are they things that companies will not be able to get used to at some point. It just takes time. „