In the past few months, companies like MicroStrategy and Tesla have taken sizable positions in Bitcoin (BTC). However, this trend has not yet become the norm for most companies. Damien Vanderwilt, co-president of Galaxy Digital, believes security and taxes could act as a deterrent to crypto investments.
“When we think about the conversations we have with corporations and institutional clients and a segment of these constituencies that are considering investing in the sector, the first order issue is security and the assets they buy become safe and available and be safe. Vanderwilt told Bloomberg in an interview on Thursday.
“The second order problem, especially for businesses, is tax treatment and the way Bitcoin is viewed as an intangible asset, especially under GAAP accounting in the US,” he added.
The Bloomberg interviewer found that “5% of finance managers” are considering Bitcoin purchases. That 5% figure comes from a recent report by the research firm Gartner, which listed the results of a survey of 77 financial managers in February. “Only 5% of the finance managers surveyed in February 2021 said they would consider Bitcoin as a corporate asset in 2021,” Gartner said in a February 16 public statement on the report.
MicroStrategy, MassMutual, Tesla, and Square have allocated millions of dollars to Bitcoin. MicroStrategy spent more than $ 1 billion on the asset and recently invested another billion in BTC. Square recently announced it would add $ 170 million worth of Bitcoin to its stack. The company spent $ 50 million on the coin last fall.
“It’s not about unsolvable problems or things that companies can’t get used to, but it does take a while,” Vanderwilt said of the two problems he mentioned.