Cathie Wood: More Tech Companies Will Adopt Bitcoin Treasury Reserves
ARK Investment Management CEO Cathie Wood said she believes more companies will load their balance sheets up with bitcoin.
"I think we're going to hear about more companies putting this hedge on their balance sheet," she said, "particularly tech companies who understand the technology and are comfortable with it."
Her prognosticatoions have yielded returns faster than ARK's upcoming Space ETF. On Monday, bitcoin miner Marathon Patent Group bought $150 million in bitcoin. The company is by its nature perhaps best-suited to understand the nuances of bitcoin and blockchain technology.
Read more: Cathie Wood: Ahead of the Curve
But the market-leading cryptocurrency's recent price swings have also highlighted the danger of inexperienced companies trying to bet on bitcoin treasuries.
One day before Wood's interview, virtual reality company NexTech AR dumped its 130 BTC treasury reserve, a "long-term" investment the Canadian company had disclosed in late December. Executives had gotten spooked by false media reporting on a so-called "double-spend" on the bitcoin blockchain.
DISCLOSURE
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
