Munich-based cannabis company SynBiotic SE has invested an undisclosed amount into bitcoin, calling it a hedge against fiat.
SynBiotic SE, which became the first cannabis-focused German company to openly invest in bitcoin, said it was using the crypto-asset as a hedge against the devaluation of the euro.
In a release published Wednesday, the company drew attention to the “excessive increase” in money supply for both euro and U.S. dollar zones, saying it was causing legitimate concerns over the massive devaluation of fiat currency.
SynBiotic SE claimed it was the first listed company in Germany to hedge against the devaluation of the euro with bitcoin, and said it was shifting some free liquidity into BTC.
CEO Lars Müller said that the decision is “focused less on price fluctuations than the risk of devaluation of euro and dollar.” He added, “Bitcoin is the exact antithesis of traditional currencies: its volume is limited to 21 million units. This limit is fixed and inviolable, which the cryptocurrency‘s decentralized organization and the blockchain‘s tamper-proof nature in turn guarantees”.
Müller continued, saying he had more long-term confidence in bitcoin than in euros or dollars. He noted the troubling influence of central institutions and politicians, which hold the power to expand the money supply immeasurably.
He claimed the cannabis sector, in particular, had a positive relationship with bitcoin and was comfortable leveraging the crypto-asset as a “simple and digital” means of payment. Müller said several SynBiotic subsidiaries had already accepted payments in bitcoin alongside fiat currency.