On Tuesday, Synbiotic SE, a German cannabis company listed on the Frankfurt Stock Exchange and Xetra, announced that it will use Bitcoin to hedge the euro. Synbiotic’s CEO Lars Müller explained that the company decided to hedge its leading crypto assets to protect the company from further risks of the depreciation of the euro and the dollar.
Synbiotic CEO: “Bitcoin is the opposite of traditional currency”
A German cannabis company is joining a growing number of companies that are adding Bitcoin (BTC) to its treasury. Synbiotic SE announced on Tuesday that it holds BTC to hedge against fiat currency inflation. Synbiotic CEO Lars Müller explained that the cannabis company has already begun to convert “free mobility to Bitcoin.”
“Our decision focuses more on price fluctuations rather than the risk of depreciation of the euro and the dollar. Bitcoin is the exact opposite of traditional currencies: the number of Bitcoins is limited to 21 million units.” Mueller said in a statement.
“This restriction is fixed and inviolable, which in turn guarantees the decentralized organization of cryptocurrencies and the tamper-proof nature of the blockchain. Therefore, our long-term confidence in Bitcoin is higher than our confidence in the euro or the US dollar, because Under the influence of central political institutions, central institutions can greatly expand the money supply,” he added.
In addition, especially in the cannabis industry, Bitcoin has gained a very positive experience as a simple digital payment method. Several subsidiaries of Synbiotic have accepted payments in Euros as well as Bitcoins.
The massive devaluation of fiat currencies is a legitimate concern
Synbiotic’s recent announcement is based on numerous companies adding BTC to their balance sheets. This week, Microstrategy announced that it will sell $600 million in convertible stock to purchase leading crypto assets. Currently, Synbiotic focuses on the synthetic production of cannabinoids, drug development, dietary supplement development and cosmetics.
Like most companies that add Bitcoin to their Treasury bills, Synbiotic’s reasoning and “legal concerns” are similar. Synbiotic and many other companies are worried about “significant devaluation of legal tender”, especially in the US dollar and EU euro.
Synbiotic believes that the company is the first corporate entity in Germany to invest in BTC to curb inflation.
What do you think of Synbiotics releasing liquidity to obtain Bitcoin? Let us know your thoughts on this topic in the comments section below.
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