New reports emerging from South Africa suggest privately held firms are converting a portion of their cash holdings into bitcoin as they seek to hedge against currency devaluation. According to one report, an open-source software specialist firm, LSD Open, could well be the first South African company to make the bold step after it reportedly acquired $134,000 worth of bitcoin.
As a local report explains, LSD Open completed the purchase in two separate transactions and an average price of just over $34,200 per BTC was paid. At the time of writing, the value of LSD Openâ€™s BTC holdings had grown by almost 70% in just â€œa matter of weeks.â€ Meanwhile, the report also discloses that LSD Openâ€™s BTC acquisition had been facilitated by Bitfund, a local cryptocurrency exchange.
LSD Open CEO Stefan Lesicnik is quoted explaining how bitcoinâ€™s attributes are aligned with the philosophy of his company. Lesicnik said:
The CEO adds that working in the open-source space seems to â€œattract many crypto enthusiasts for whom the decentralised, open nature of cryptocurrencies appeals.â€ Meanwhile, Lesicnik also discloses that LSD Open is also involved in a â€œbroad spectrum of the ecosystem, including running and maintaining bitcoin full nodes.â€
More Companies Planning to Buy
In the meantime, the same report also quotes Dean Joffe, co-founder of Bitfund, revealing how his organization â€œhas helped seven or eight South African firms to buy cryptocurrencies â€“ mainly bitcoin and stablecoins like USDC.â€ Joffe also adds that his company is already â€œin discussions with two Johannesburg Stock Exchange-listed companies about doing the same for them.â€
However, the report explains that these companies â€œhave not yet pulled the trigger on any cryptocurrency purchases.â€
What are your thoughts on the move by South African companies to buy and hold BTC? You can tell us what you think in the comments section below.
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