As a seasoned crypto investor with a decade of experience under my belt, I must admit that the recent move by Worksport (WKSP) to incorporate Bitcoin and XRP into its treasury strategy has caught my attention. Having witnessed MicroStrategy’s unconventional yet profitable approach to Bitcoin investments in 2020, I find it intriguing to see this trend gaining traction among publicly traded companies.
On December 5, shares of American manufacturer Worksport (WKSP) increased by 9.1%, following their decision to adopt Bitcoin and Ripple (XRP) as part of their cash management strategy.
As stated in a recent announcement, Worksport is considering using up to 10% of any surplus funds from their operations to buy Bitcoin (BTC) and XRP (XRP). This initial investment could amount to as much as $5 million. By doing so, the company aims to protect itself against inflation while also expanding the variety of assets in its treasury.
In addition to utilizing surplus funds for investment, Worksport plans to accommodate cryptocurrency transactions within its online marketplace. By doing so, the firm projects a potential decrease of approximately 37% in transaction fees.
Steven Rossi, CEO of Worksport, stated that as Bitcoin and XRP become more popular among investors and are recognized as significant investment options, he thinks they could function well as assets held in treasury reserves. Their properties that resist inflation make them increasingly dependable for storing value.
Rossi stated that by smartly investing part of our funds in these digital currencies and accepting cryptocurrency transactions, we’re strengthening our financial plan and adapting to the direction that global finance is headed.
Workspot is joining the increasing number of publicly-traded firms by utilizing their cash reserves to acquire digital assets.
In 2020, MicroStrategy was one of the first to adopt a unique strategy by frequently buying Bitcoin. At first, this method was viewed as an unusual move; however, it’s now yielding the company estimated profits of around $17 billion based on today’s market values.
Companies like Coinbase and mining corporations such as CleanSpark, Riot Blockchain, and Hut 8 also have Bitcoin (BTC) as part of their investment portfolios.
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2024-12-06 00:42