Canadian Software Startup Puts 40% of Cash Reserves Into Bitcoin

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24 August 2020

An Ottawa-based graphics software firm, Snappa, announced Monday its decision to move a significant amount of its cash reserves into bitcoin, citing concerns of inflation and global economic uncertainty.

  • Co-founder Christopher Gimmer told CoinDesk in a private message, "The allocation itself represents 40% of our cash reserves." The company did not mention the number of bitcoins it currently holds, however, which Gimmer explained was a decision made "for privacy reasons."
  • The initial 40% allocation is only the beginning for the seven-person startup. "We're still accumulating coins, and we don't plan on selling anytime soon," Gimmer told CoinDesk. "If we're right about where bitcoin is heading then our allocation could get very high."
  • In a blog post, Gimmer explained his company’s belief that traditional savings accounts are inferior to other options for growing cash reserves. "I believe we now have a far superior savings technology available to us," Gimmer wrote. "That technology is Bitcoin."
  • Gimmer also mentioned the recent decision by MicroStrategy to move $250 million into the leading cryptocurrency, which he described as "fascinating."

Read more: MicroStrategy Buys $250M in Bitcoin, Calling the Crypto ‘Superior to Cash’