ARK Investment Management CEO Cathie Wood said she believes more companies will load their balance sheets up with bitcoin.
In a Saturday interview with Yahoo Finance, the exchange traded fund (ETF) magnate and outspoken bitcoin advocate said large companies have asked her if they should follow Square. Inc’s lead. Square is one of the few public companies to invest in bitcoin as an inflation hedging strategy.
“I think we’re going to hear about more companies putting this hedge on their balance sheet,” she said, “particularly tech companies who understand the technology and are comfortable with it”.
Her prognosticatoions have yielded returns faster than ARK’s upcoming Space ETF. On Monday, bitcoin miner Marathon Patent Group bought $150 million in bitcoin. The company is by its nature perhaps best-suited to understand the nuances of bitcoin and blockchain technology.
But the market-leading cryptocurrency’s recent price swings have also highlighted the danger of inexperienced companies trying to bet on bitcoin treasuries.
One day before Wood’s interview, virtual reality company NexTech AR dumped its 130 BTC treasury reserve, a “long-term” investment the Canadian company had disclosed in late December. Executives had gotten spooked by false media reporting on a so-called “double spend” on the bitcoin blockchain.
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