Globant buys $500,000 worth of bitcoin

Globant buys $500,000 worth of bitcoin

Bitcoin DeFi News
May 25, 2021 by J.D. Smith
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Globant has revealed that it has invested $500,000 to buy bitcoin to hold as a reserve. In fact, the official document sent to the SEC reads: “The Company accounts for its crypto assets as indefinite-lived intangible assets in accordance with IAS 38 “Intangible Assets”. Bitcoin is a cryptocurrency that is considered to be an indefinite

Globant has revealed that it has invested $500,000 to buy bitcoin to hold as a reserve.

In fact, the official document sent to the SEC reads:

“The Company accounts for its crypto assets as indefinite-lived intangible assets in accordance with IAS 38 “Intangible Assets”. Bitcoin is a cryptocurrency that is considered to be an indefinite lived intangible asset because bitcoin lacks physical form and there is no limit to its useful life, bitcoin is not subject to amortization but it is tested for impairment”.

Globant is in fact a conglomerate of IT and software development companies, founded in Buenos Aires in 2003, with headquarters in Luxembourg and offices in the UK, Brazil, India, Mexico, Spain and other countries.

It is listed on Wall Street under the symbol GLOB, has more than 16,000 employees, a turnover of more than $800 million, and the current value of its shares, at $217, has almost doubled in the last 12 months.

In the document sent to the SEC, it claims to have invested $500,000 to buy crypto assets, but has chosen to buy only bitcoin.

Globant follows in Microstrategy’s footsteps with Bitcoin

MicroStrategy made a similar choice last year and even adopted bitcoin as its primary reserve instead of the US dollar.

Globant also states:

“The Company’s crypto assets are initially recorded at cost. Subsequently, they are measured at cost, net of any impairment losses incurred since acquisition. The Company performs monthly analysis to identify possible impairment. If the carrying value of the crypto asset exceeds the fair value based on the quoted price in the active exchange market, the Company will recognize an impairment loss equal to the difference between the fair value and the book value in the consolidated statement of comprehensive income. Gains, if any, will not be recognize until realized upon sale in the consolidated statement of comprehensive income. Further details are disclosed in note 11. As of March 31, 2021, the Company has not recognized any impairment”.

According to this statement, it is possible to imagine that the purchase was made before the end of the third quarter of the year, and therefore not recently.

Globant’s decision reveals that more and more companies are deciding to convert a portion of their cash reserves into bitcoin for long-term storage, along the lines of what MicroStrategy did in 2020.