A German cannabis firm SynBiotic SE has announced its plans to follow companies like Tesla and Microstrategy to add Bitcoin (BTC) to its balance sheet.
The firm revealed on its website that the decision was based on its concern about the devaluation of fiat money. It said an “excessive increase” in both euro and U.S. dollar money supply” has made Bitcoin investment a viable option.
First listed German company to invest in Bitcoin
SynBiotic SE is already listed on the Düsseldorf Stock Exchange and will become the first listed German company to invest in Bitcoin.
The firm also revealed that Bitcoin has been favorable for the cannabis industry since the currency is a digital means of payment. Many SynBiotic subsidiaries now accept Bitcoin payment options.
Synbiotic SE says it wants to concentrate on the production and development of cannabis and wellness products. As a result, it is trying to build a dynamic group of companies in the cannabis sector.
The decision of business services company Microstrategy and electric car maker Tesla to add Bitcoin to their balance sheet has led to more Bitcoin adoption by other companies. Synbiotic SE has become the latest company to follow in that direction. However, while Microstrategy and Tesla disclosed the amount they have invested, there was nothing of such with SynBiotic SE.
Bitcoin doesn’t suffer from devaluation
SynBiotic SE chief executive officer Lars Müller has explained why the company decided to look at Bitcoin as an investment option.
“Our decision focused less on price fluctuations than the risk of devaluation of euro and dollar,” he stated.
He added that Bitcoin is not subject to more additions, as its limit is fixed and inviolable. While the government continues to pump more fiat currencies into the economy, Bitcoin remains the exact opposite. Muller added that the blockchain’s tamper-proof nature and the decentralized organization of Bitcoin make it a guarantee that no Bitcoin will be added to the 21 million already in circulation.
As a result, he says the company is more confident about Bitcoin than euros for the long term since a central institution can influence the latter.