Crypto finance specialist Coinsilium (AQSE:COIN) has doubled the amount of cryptocurrency it holds in treasury thanks to its active crypto treasury management strategy.
As of 21 December, the London listed venture operator’s Crypto and token treasury stood at more than $1.09m in value, almost twice the value it held in August.
Off the back of the news, shares in Coinsilium rose 8.2% to hit 3.25p, the highest level since July 2019.
Coinsilium said the vast majority of its holdings were now in highly liquid cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), ICON (ICX) and RIF (RIF). The company said it had made a strategic decision to hold the most highly liquid cryptocurrencies with the strongest growth potential.
The value of $1,090,674 represents a 90% gain to the company’s cryptocurrency treasury — and excludes cash — in the last six months.
Included in the Company’s $1m + treasury, are just under 2 million fully vested and vesting RIF tokens which are currently trading at around 13c, up over 60% since August. Coinsilium said it will continue to prudently use the Money on Chain platform to stake its RIF tokens for yield.
Coinsilium added that it had sold off the bulk of the less-valuable tokens it received from token-sale advisory work, instead trading into more liquid positions in the larger cryptocurrencies like Bitcoin and Ethereum for stronger long-term growth potential.
And as the price of the world’s largest cryptocurrency, Bitcoin, hits fresh new highs above $20,000/coin, this puts Coinsilium in a very strong position going into 2021.
World’s richest flood into crypto
In recent months some of the world’s largest asset managers and investors have finally made the switch into cryptocurrency, years after Coinsilium.
UK asset management giant Ruffer confirmed in December that it had bought £550 million of Bitcoin for its Multi-Strategy Fund. That 45,000 BTC buy puts Ruffer’s exposure to Bitcoin at around 2.7% of the firm’s assets under management. The investment was made as a protective move for portfolios to act as a hedge against currency deflation in a “fragile” monetary system amongst distorted markets, the institutional asset manager said.
And US cloud software giant Microstrategy (NASDAQ:MSTR) – which bought $500 million of Bitcoin earlier this year — announced this week it had invested all of the proceeds of its $650 million convertible senior note sale in early December into Bitcoin, bringing the company’s total treasury reserves of BTC to 70,470, worth over $1.596 billion.
Morgan Stanley’s chief global strategist Ruchir Sharma also wrote in a Financial Times opinion piece that with the US showing no interest in paying off its debts, that cryptocurrency could supplant the dollar as the world’s reserve currency. That means cryptocurrency finance firms and specialist crypto product builders will be in the ascendancy over the next decade.
Big growth plans
Coinsilium has announced a series of measures to take advantage of the rapid growth of the cryptocurrency market.
It won a £330,000 follow-on investment from Gibraltar’s IOV Labs in November, and on 17 December announced a new project to create a limited edition Gibraltar crypto stamp.
Creating the crypto-based collectible with the Gibraltar Philatelic Bureau is Coinsilium’s first venture into the Non-Fungible Tokens (NFT) market. The Crypto Stamp series will go on sale in Q2 2021.
“This is expected to become particularly pertinent to the company’s ongoing cryptocurrency treasury management, since any revenues derived by the company from the trading of NFTs on digital marketplaces will be denominated in cryptocurrency,” executive chairman Malcolm Pallé said.