BitGo, a cryptocurrency custodian, has revealed it has been hodling $250 million in bitcoin (EXANTE: Bitcoin) on its balance sheet since 2014, BitGo CEO Mike Belshe told CoinDesk.
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According to Belshe, BitGo added bitcoin (EXANTE: Bitcoin) to its balance sheet when the service introduced a multi-signature feature. However, other big companies like MicroStrategy, Square, and MassMutual only started investing in cryptocurrencies in 2020. Last week, Coinbase revealed that it has also been hodling assets in bitcoin (EXANTE: Bitcoin) and other cryptocurrencies since 2012.
"I strongly recommend that companies invest heavily in bitcoin. I think the global pandemic has shown that some exposure to digital assets is actually a way to stabilize your business as opposed to destabilizing it," Belshe pointed out.
According to him, the decision to add bitcoin to the balance sheet was driven by the company's desire to keep pace with the interests of customers. The company invested in the cryptocurrency with the expectation that it had enough reserves to continue working for 24-36 months if the price of bitcoin collapsed to zero.
In December last year, BitGo agreed to pay $98,830 to settle violations of multiple sanctions programs. According to the US Department of the Treasury, BitGo "failed to prevent" persons located in sanctioned jurisdictions from using its non-custodial digital wallet management service. The watchdog said BitGo "had reason to know" that users were located in sanctioned jurisdictions based on their IP addresses.
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