As of its latest filing to the SEC, Globant, one of Argentina’s four big tech firms, has quietly made its first foray into the world of cryptocurrency investing. The firm purchased bitcoin during the first three months of this year, and is now part of a select number of LATAM unicorns who have adopted a method to infuse some of its value into crypto assets.
Globant Investment in Cryptocurrency
Unicorn, a software tech giant based in Globant, Argentina, joins a select group of companies currently investing in cryptocurrencies, according to its latest Admission To the SEC. The company, founded in 2003, reported a $ 500,000 purchase in bitcoin (B T c) During the first quarter of 2021 (Q1). A smaller amount for a company with a valuation of over $6.5 billion and listed on the New York Stock Exchange (NYSE).
Globant listed the bitcoin company as part of its intangible assets, stating that bitcoin is:
A cryptocurrency that is considered an indefinite intangible asset because bitcoin lacks a physical form and has no limit to its useful life is not subject to bitcoin amortization but is tested for impairment.
The filing states that Globant purchased the aforementioned price of bitcoins, but did not specify the number of bitcoins purchased or the price the company paid for them. However, the filing makes it clear that if the asset price falls behind the acquisition price, Globant will recognize loss losses, and the gain will not be recorded until the sale of the asset.
While some United States-based companies such as MicroStrategy and Tesla, and asset managers such as Grayscale are quick to jump into the cryptocurrency bandwagon, its LATAM-based counterparts have a more modest approach to this new asset class. This may be related to how quickly these companies adopt innovation and how they manage to balance risk versus opportunity because of their own business models.
Argentine companies have started embracing crypto
However, Globant is not the first Argentine company to have made inroads with cryptocurrency. Mercadolibre, an e-tailer company with a large footprint in LATAM, Bought $ 7.8 million in bitcoin this month, announcing it as part of its treasury strategy, potentially hinting at more bitcoin purchases down the road. Mercadolibre too Launched A real estate platform that only accepts bitcoin as a form of payment.
More LATAM-based companies, and especially those from Argentina, are expected to adopt crypto as part of their business strategy soon due to the devaluation of the national currency. difficulties that they face in receiving dollars.
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