V2G technology firm Nuvve announces Board approval to invest in Bitcoin and accept it as payment, following MicroStrategy’s lead among Nasdaq-listed companies.
By Godfrey Benjamin
Edited by Marco T. Lanz
Updated
3 mins read
Nuvve Holding Corp. is the latest Nasdaq-listed firm to follow in the footsteps of the business intelligence and software company MicroStrategy Inc (NASDAQ: MSTR regarding its Bitcoin BTC $87 890 24h volatility: 0.3% Market cap: $1.74 T Vol. 24h: $27.67 B bets.
Earlier on January 28, the Vehicle-to-grid (V2G) technology firm, known for its green energy with electric vehicle charging tech, announced that its Board of Directors had approved its adoption of Bitcoin as part of its treasury reserve.
The plan is to use up to 30% of its spare cash to purchase Bitcoin, while it also accepts the flagship cryptocurrency as a payment method.
Nuvve executives are certain that this move would help diversify its treasury holdings. Meanwhile, the plan to adopt Bitcoin may have brought some traction to the company, as its stock price suddenly witnessed a 3% increase.
For a stock that has faced volatility struggles in the last few weeks, analysts commend this noticeable rally for NVVE. However, it remains 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.
By all means, the number of Nasdaq-listed companies copying MicroStrategy, which started buying BTC in August 2020, is increasing.
A couple of them perceive the strategy as a means to get better returns for their shareholders. MicroStrategy’s Bitcoin holding, now valued at around $48 billion, spans five years of consistent acquisition and accumulation.
Last week, real estate tech company Fathom Holdings (NASDAQ: FTHM) announced that it has added Bitcoin to its list of assets to buy. Just like Nuvve, Fathom did not make this decision until it sought the approval of its Board of Directors. Moreover, the firm is allocating 50% of its excess cash to this cause.
Fathom wants to buy up to $500,000 worth of BTC 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.
Similarly, 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 BTC by the end of this year. A few others, like healthcare companies Semler Scientific and Cosmos Health, have equally announced their respective Bitcoin-buying strategies.
Much of the traction that Bitcoin is gaining from institutional investors comes from the price increase that the coin has recorded so far. From trading below $50,000 in 2023, BTC has surged by more than 100%, trading at $100,762.73.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
