Bitcoin continues its journey towards surpassing $20,000, and the rally has been fuelled by major corporations all across the globe. Latest reports have revealed Financial TV Company Real Vision is another big name that has already invested 10% of its cash holdings in Bitcoin three months ago, as informed by the company’s CEO Raoul Pal.
The company has now become part of the growing list of Bitcoin adoption among major players, like that of business intelligence firm MicroStrategy and payments company Square. Per a report from Bitcoin Treasuries, these two hold 243,000 Bitcoin, worth approximately $4.5 billion.
Now, Paul states that holding Bitcoin was intact a “good way “ of holding excess cash. He Said:
“We think it’s a good way to hold excess cash. It’s not like I haven’t done the work on it, I’ve been involved in this space since 2012.”
Real Vision has invested its cash holdings via crypto lending service BlockFi. The company also lends out its Bitcoin using the service, which, as of now, offers 6% APY. The CEO went on to explain the company’s plan to invest in the number one cryptocurrency:
“It’s only 10%. What’s the worst that could happen? It goes down 50% and we lose 5% of our treasury. Well we’re a subscription-based business; we generate cash, so should be fine. But if it goes up 10X, it makes a decent difference.”
Institutions are holding themselves back from Bitcoin
According to Pal, one of the reasons why many institutions haven’t yet hopped in on the bitcoin train is because the corporate treasurers who generally report to the CFO has to justify putting firm assets into cryptocurrency. And in order to do that, he needs to be able to reassure shareholders.
“He needs some piece of paper written by an investment bank or somebody with credibility that says this is a really good diversification asset that adds overall value to your portfolio. The moment that kind of research comes out—and there is some of it coming out—that will completely shift the game,” Pal said.
Real Vision purchased bitcoin at the beginning stages of the current rally, somewhere around $12,000. The token has since peaked at $19,850 and is currently priced at $19,383. Even this is up more than 60%, posting good profits for Real Vision within such a small time frame.
For Pal, this is just the start. He went on with a price prediction for 2020:
“I do think it gets to $1 million. Now that’s within the next five to six years. So, where does it get to this year? I don’t know, somewhere between $150,000 and $300,000. It’s impossible to know but it’s a lot further than here.”