GSTechnologies is the latest company to adopt a Bitcoin Treasury Policy as London-listed firms race to emulate the strategies of US groups such as MicroStrategy, which have long held bitcoins on their balance sheet.
The company’s directors believe Bitcoin offers liquidity comparable to cash whilst serving as a reliable store of value. They say the policy will reduce counterparty and exchange rate risks while potentially boosting shareholder returns.
GSTechnologies’ decision to adopt a Bitcoin Treasury Policy makes more sense than most as the move aligns with GST’s GS Money strategy and its operation of the Bake Cryptocurrency Platform, which it acquired earlier this year.
As a digital asset services specialist, the company says it is well-positioned to integrate Bitcoin into its corporate treasury and strengthen its position in the blockchain economy.
GST clearly has operational exposure to cryptocurrency. Some would question whether a Bitcoin treasury suits the business models of some of the other companies that have adopted them in recent weeks.
GSTechnologies shares rose 25% on Wednesday as the bitcoin treasury trade rotated into the stock.
“We continue to make significant progress with the Group’s GS Money strategy, including the advancement of the Bake Cryptocurrency Platform acquired at the beginning of the year,” said Tone Goh, Chairman of GST.
“Holding a significant proportion of the Company’s cash resources in Bitcoin makes perfect sense given the Group’s operations and the services it is providing to its clients. We are excited about the potential for Bitcoin to enhance shareholder value while reinforcing our leadership in the digital asset space.”