Key Points
- Nuvve Holding Corp. plans to allocate 30% of its treasury reserve to Bitcoin, following MicroStrategy Inc’s strategy.
- Other Nasdaq-listed firms and international companies are also adopting Bitcoin buying strategies.
Nuvve Holding Corp., a Nasdaq-listed firm, is adopting a Bitcoin strategy similar to that of business intelligence and software company MicroStrategy Inc. Nuvve is known for its Vehicle-to-grid (V2G) technology and green energy with electric vehicle charging tech.
On January 28, Nuvve announced that its Board of Directors approved the adoption of Bitcoin as part of its treasury reserve.
Nuvve’s Bitcoin Strategy
The company plans to use up to 30% of its spare cash to purchase Bitcoin and also accept the cryptocurrency as a payment method. Nuvve executives believe this move will help diversify its treasury holdings. This adoption of Bitcoin seems to have positively impacted the company, as its stock price saw a 3% increase.
Despite volatility struggles in recent weeks, this rally for NVVE is commendable. However, it’s still 13% down over the last month and 51% in six months. At the time of this writing, the stock has registered a 1.81% increase and was trading at $2.81.
More Nasdaq-listed companies are following MicroStrategy’s strategy, which began buying Bitcoin in August 2020. Some companies perceive this strategy as a way to provide better returns for their shareholders. MicroStrategy’s Bitcoin holdings, now valued at around $48 billion, have been consistently acquired and accumulated over the past five years.
Bitcoin Adoption by Other Companies
Recently, real estate tech company Fathom Holdings announced that it has added Bitcoin to its list of assets to buy. Like Nuvve, Fathom sought the approval of its Board of Directors before making this decision. The firm is allocating 50% of its excess cash to this cause.
Fathom plans to buy up to $500,000 worth of Bitcoin or Bitcoin ETFs in the next two weeks, with plans to increase over time. The firm’s CFO Joanne Zach acknowledged that Bitcoin is becoming more accepted as a decentralized store of value, with growing interest in other digital currencies.
Additionally, Japanese financial firm Metaplanet Inc. recently announced a landmark capital raise in the Asian equity market to increase its Bitcoin holdings. It plans to acquire 10,000 Bitcoin by the end of this year. Other companies like healthcare companies Semler Scientific and Cosmos Health have also announced their respective Bitcoin-buying strategies.
The traction that Bitcoin is gaining from institutional investors is largely due to the coin’s price increase. From trading below $50,000 in 2023, Bitcoin has surged by more than 100%, trading at $100,762.73.
