Good Morning Everyone,
As Bitcoin price ascends back into the mid 40’s (currently $44,074) - up 34% from the lows, KPMG Canada have announced they have added Bitcoin & Ethereum to their balance sheet. It’s unclear as yet how much of each has been acquired and what the actual distribution between the two assets is, but my guess is that it’s a bitcoin-heavy position.
KPMG was founded in 1987, and is regarded as one of the major four accounting firms globally. The company employ 236,000 humans, and achieved in excess of $32b in total revenue last year. It’s a massive business, and the fact that they have now joined the likes of Tesla, Square and Microstrategy in adding bitcoin to their balance sheet is huge, and is likely to really send a shockwave around the world and amplify the game theoretic dynamics specific only to bitcoin as a result of its inelastic supply.
The Company said in it’s statement:
“KPMG in Canada has completed an allocation of cryptoassets to its corporate treasury, the firm's first direct investment in cryptoassets.
The allocation includes Bitcoin (BTC) and Ethereum (ETH), as well as carbon offsets to maintain a net-zero carbon transaction to deliver on the firm's stated environmental, social and governance (ESG) commitments.”
Also worth noting, while they have not disclosed the amounts it appears they won’t custody the assets themselves, instead giving this responsibility to Gemini.
“KPMG in Canada acquired Bitcoin and Ethereum on its balance sheet through Gemini Trust Company LLC's execution and custody services.”
This is yet another strong indicator, of the institutionalization of bitcoin the asset, and a demonstration of the institutional interest in other digital assets, and the ecosystem more broadly.
While you likely know my views on most of these other “assets”, it’s unlikely this trend is reversing anytime soon, and almost certainly leads to many more people gaining exposure to these networks, and hopefully is a catalyst for the early majority cohort of the distribution, to begin to learn about the critical elements of the bitcoin protocol and specifically, seek to self-custody their holdings.
The game theory is playing out before our eyes. More companies will continue to add bitcoin to their balance sheet in 2022, and I believe more nations will adopt it as legal tender following El Salvadors lead.
No doubt KPMG aren’t doing any of this for the freedom-go-up (FgU) characteristics of bitcoin, the beautiful thing about the protocol is, that it doesn’t matter. KPMG will offer bitcoin to its customers in Canada initially as a pilot, and then globally. They will expose hundreds of thousands, if not millions of people to this technology and these people will be lured in for number-go-up tech. KPMG is simply helping to wheel the trojan horse into the city.
Over time, these people will learn about what this technology truly enables, and they will seek to self-custody their bitcoin and stay for freedom-go-up.
It is simply a matter of time. Bitcoin is inevitable.
Hope you have a great day, and i’ll talk to everyone tomorrow.
AK
