$8.6B IT firm Globant revealed as Bitcoin’s latest institutional buyer
IT firm Globant made waves last month when it disclosed that it had purchased $8.6 million worth of bitcoin, but the company’s decision not to give in-depth interviews on the subject left many wondering why it had decided to buy Bitcoin. New details have emerged, with Globant CEO Sebastian Sztuczkiewicz claiming that the company is buying Bitcoin and other cryptocurrencies to develop new cloud services.
Globant, one of South America’s largest software development firms, has just become one of the newest institutional investors in the crypto market. The company recently announced that they have acquired $8.6 billion worth of Bitcoin, in a move that is expected to boost its bottom line as Bitcoin’s price rises. The company’s shares soared by as much as 20% on news of this news, as investors realize the value of owning a large amount of the most valuable cryptocurrency.
Documents filed with the US Securities and Exchange Commission show that major IT conglomerate Globant is the latest major company to invest in bitcoin (BTC). The company disclosed its purchases of cryptoassets for the first three months of the year in a filing with the U.S. Securities and Exchange Commission on Tuesday : During the first quarter of 2021, the Company acquired crypto assets totaling [$500,000], all of which consisted of bitcoin. The Company’s crypto investments and expenses are included in intangible assets, as are the Company’s licenses, customer relationships, customer contracts and non-compete agreements. Globant said bitcoin is an intangible asset because it has no physical form and there is no limit to its useful life. She added that any income from the digital assets will not be recognized until they are sold. Globant is an information technology and software development company founded in 2003 that operates primarily in Latin America, but also has offices in the United Kingdom and the United States. Despite the presence of bitcoin on its balance sheet, the company has not disclosed on what basis the value of bitcoin is paid. However, since the purchases were made in the first quarter, any BTC purchases made from the second week of February will now be at a loss. Although many listed companies have purchased BTC in recent months, many companies are currently underwater due to their BTC purchases. According to Bitcoin Treasuries, six publicly traded companies are currently taking losses on their BTC purchases as bitcoin has fallen back to price levels seen in early February. Nexon, a Japanese online game company, announced on 28. April announced the purchase of BTC for $100 million; bitcoin is now worth $67 million. Seetee, a subsidiary of Norwegian energy giant Aker, bought $58.6 million worth of bitcoins in early March, which had fallen to $44.9 million by Tuesday. Chinese tech company Meitu, which announced $49.5 million in bitcoin purchases in March and April, has seen the value of its cryptocurrency assets fall to $36 million. Financial advisory firm Brooker Group also lost $2 million on a $6.6 million purchase. BTC, while the value of Phunware’s enterprise cloud platform has fallen by a third since the purchase. Also multinational BlackRock seems to have lost 33% of its purchase of 360,000 BTC. However, the company acquired the position in March as a windfall as a result of a futures contract entered into in January, meaning BlockRock did not issue fiat currency to accumulate the cryptocurrency.