Canadian graphics software company Snappa has revealed that it was holding bitcoin as a reserve asset. Snappa follows the firms Microstrategy and the Canadian restaurant chain Tahini’s by deciding to convert cash reserves into the scarce crypto asset. The graphics software firm Snappa based in Ottawa has joined the trend of companies converting cash reserves into bitcoin (BTC). The company revealed its decision on 24 August, when the company’s cofounder, Christopher Gimmer, wrote a blog post about the move.
Gimmer says the firm decided to allocate bitcoin into the company’s reserves due to global economic uncertainty, the devaluation of fiat, and Bitcoin’s digital scarcity. Gimmer also mentioned the controversial stock-to-flow (S2F) theory in the announcement and believes that because Bitcoin is transparent, they can measure Bitcoin’s S2F with 100% certainty.
Gimmer thinks this trend of money creation and the devaluing of fiat currencies will continue.
Gimmer’s blog post also discussed the billion-dollar firm Microstrategy’s purchase of 21,454 BTC for $250 million.