Companies Buying Bitcoin and Gold Instead of Cash... Reflecting Uncertain Economic Outlook

Palantir Purchases $50 Million Worth of Gold
Tesla and Square Buy Bitcoin

[Asia Economy New York=Correspondent Baek Jong-min] Companies are purchasing Bitcoin and gold to prepare for the uncertain future business environment caused by the COVID-19 pandemic.

[Image source=Reuters Yonhap News]

CNBC reported on the 17th (local time) that American data analytics company Palantir bought gold worth $50.7 million just this month.

Palantir’s gold purchases were disclosed through its Q2 earnings report. Palantir stated that it purchased 100 ounces of gold bars in August alone.

It is estimated that Palantir invested in gold after going public on the New York Stock Exchange last September and seeking ways to use the cash it secured.

Palantir’s gold purchases are interpreted as reflecting companies’ concerns that holding cash is disadvantageous amid rising inflation that began after the COVID-19 pandemic.

Gold, noted as an inflation hedge, surged to $2,000 last year but is currently trading around $1,780.

CNBC predicted that Palantir might also purchase cryptocurrencies besides gold. Dave Glazer, Palantir’s Chief Financial Officer, previously stated, “We are considering buying cryptocurrencies such as Bitcoin and have had internal discussions about it.”

Tesla and Square have previously used their cash holdings to purchase large amounts of Bitcoin. MicroStrategy also bought large amounts of Bitcoin using funds raised through corporate bond issuance.