Shiba Inu came roaring back after a recent selloff, Tesla (TSLA) – Get Tesla Inc Report disclosed an $101 million impairment loss related to bitcoin while KPMG Canada added bitcoin to its balance sheet.
Transcript:
We have a famous meme Coin getting a second lifeline, while one of the big four accounting firms is now putting crypto on its balance sheet.
It’s your boy Ross Mac and these are the biggest stories in cryptocurrency on Tuesday, February 8.
The famous meme Coin Shiba Inu looks like it might be coming back from the dead despite the downturn that it’s been on. The downward pressure came alongside the broader cryptocurrency selloff but with the recent rebound, Shiba has gained momentum with a recent infusion of around $3.5 billion. In the past week, the coin is up around 30%…all it needs now is a tweet from Elon and it’ll be off to the races.
Tesla disclosed that it posted a $101 million impairment loss to the Securities and Exchange Commission in its annual report to the Securities and Exchange Commission. The loss is due to the company carrying $2 billion dollars worth of bitcoin on its balance sheet. However, the company did record a gain of $128 million after it sold off some bitcoin back in March of last year.
KPMG Canada has added an undisclosed amount of Bitcoin and Ethereum to its balance sheet. The company said that it believes that the institutional adoption of crypto assets and blockchain will become a regular part of the asset mix for investors. KPMG went on to note that they expect to see a lot of growth in DeFi, NFTs and the metaverse in the years to come. Bitcoin to a miill, let’s go.
I’m Ross Mac and that was the Crypto Minute on TheStreet.
TheStreet’s Crypto Minute is brought to you by Blockchain.com.
- Corporate giant KPMG no joins the likes of MicroStrategy and Tesla in adding Bitcoin to their balance sheets.
- Bitcoin price has rallied above $44,000, having bounced higher since last week.
KPMG in Canada has added Bitcoin and Ethereum to its balance sheet, the multinational company becoming the latest among big-name institutions to look at the leading cryptocurrencies as investment opportunities.
In a statement released on Monday, KPMG Canada said it had allocated BTC and ETH to its corporate treasury, completing what is now the audit, tax, and advisory firm’s “first direct investment in crypto assets.”
Apart from the top two digital assets, KPMG is also investing in “carbon offsets” as it seeks to maintain a net-zero carbon footprint.
According to the company, this is designed to help it continue to commit to environmental, social, and governance (ESG) principles.
“This investment reflects our belief that institutional adoption of cryptoassets and blockchain technology will continue to grow and become a regular part of the asset mix,” said Benjie Thomas, the managing partner for advisory services at KPMG in Canada.
He also noted that cryptocurrencies were a “maturing asset class,” currently attracting all types of investors, including hedge funds, family offices, pension funds, and large insurers.
While the above investor class has increasingly looked to gain exposure to Bitcoin and other cryptocurrencies, banks and other financial advisors continue to explore how best to offer crypto-related products and services, Thomas added.
KPMG plans to invest in other sectors of the crypto ecosystem, including decentralized finance (DeFi), non-fungible tokens (NFTs), and the metaverse, the statement added.
KPMG in Canada has not revealed how much they have invested in each of the crypto assets. However, this move sees the company join other mainstream firms like Tesla, MicroStrategy and Block (formerly Square) in adding BTC to their balance sheet.
The firm said it invested in the two cryptocurrencies through Gemini Trust Company LLC.
The price of Bitcoin rallied on Monday afternoon as the news broke. The BTC/USD pair reached intraday highs of $44,477 and was looking to extend the upside that accelerated over the weekend.
Ethereum’s ETH has jumped 6% in the past 24 hours to trade above $3,180, according to data from CoinGecko.
KPMG LLP has become the latest publicly traded company to add cryptocurrencies to its balance sheet. The Canada-based branch of the multinational full-service audit, tax and advisory firm today announced that it was now allocating assets to digital assets including Bitcoin and Ethereum.
The Canadian branch of KPMG adds Bitcoin and Ethereum to its balance sheet
In a first of its kind move in Canada, KPMG issued a press release today announcing that it had begun making investments in Bitcoin and Ethereum. The firm stated that it believes cryptoassets will continue to see more institutional adoption, which is why it was taking the step.
Benjie Thomas, Canadian Managing Partner of KPMG’s advisory services said the firm believes that crypto is a “maturing asset class” that is already in the plans of many other financial advisors, managers, and institutions. The investment in Bitcoin and Ethereum reflects the KPMG’s belief in a future with broad adoption of crypto.
“This investment reflects our belief that institutional adoption of cryptoassets and blockchain technology will continue to grow and become a regular part of the asset mix,” Thomas said.
The firm will also buy carbon offsets to maintain net-zero carbon transactions in keeping with its environmental, social and governance (ESG) commitments. A governance committee comprises members from different arms of KPMG to make decisions about treasury allocation to the investment. The press release also states that the firm acquired its Bitcoin and Ethereum through Gemini Trust Company LLC’s execution and custody services.
KPMG has plans beyond Bitcoin and Ethereum
Beyond the two digital assets it currently holds, KPMG Canada intends to broaden its foray into the digital assets space. Kareem Sadek, KPMG Canada advisory partner and co-leader at the firm’s crypto assets and blockchain services unit, revealed that the accounting giant was also considering enhancing its capabilities in DeFi, NFTs, and the metaverse.
“We’ve invested in a strong cryptoassets practice and we will continue to enhance and build on our capabilities across Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs) and the Metaverse, to name a few,” he said.
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