Investing in Crypto Through Your Company

As Bitcoin and other cryptocurrencies continue their rapid rise into the mainstream, we are beginning to see more and more companies, institutions and corporations adding crypto to their balance sheets. Many major corporations began investing in crypto last year during Bitcoins price spike, with companies like Tesla and MicroStrategy each holding over $1 billion UD in Bitcoin at the end of 2021.  

Crypto can be an appealing investment for many companies as it can diversify the company’s portfolio as well as create a new stream of income that can be used to grow the company. Investing in cryptocurrency can also open new payment avenues for business as many cryptocurrencies, like Bitcoin, can be used as a method of payment for goods and services. The number of Australian businesses that accept Bitcoin as payment continues to grow as crypto begins to enter the traditional financial system. 

Companies that invest in crypto 

The institutional adoption of cryptocurrency has steadily grown over the past two years. Back in June of 2021 it was reported by BitcoinTreasuries that 34 public companies collectively held over 213,000 Bitcoins, this included companies that did not operate in the crypto industry.  

Tesla 

Prominent electric vehicle manufacturer, Tesla, added Bitcoin to its balance sheets in Q1 of 2021. Tesla founder, CEO and crypto enthusiast, Elon Musk reported that the company were holding $1.37 Billion USD worth of Bitcoin.  

For a period of time, people could choose to pay for Teslas with Bitcoin. Musk later announced that they would no longer accept BTC due to the environmental toll of Bitcoin mining. Tesla has now begun accepting payments in Dogecoin for Tesla merchandise available on their online store instead as the DOGEs cost per transaction is far lower than Bitcoins.  

MicroStrategy 

MicroStrategy is a world-renowned business analytics platform that adopted Bitcoin as its primary reserve asset. MicroStrategy holds a total of 129,218 Bitcoin. The Companies CEO, Michael Saylor, has stated that the reason the company added Bitcoin to its balance sheet is to combat the effects of inflation and break the company’s ties to cash. 

Block 

In October 2020, digital payment company, Block (previously named “Square”), announced they had purchased 4,709 Bitcoins. Block’s CFO, Amrita Ahuja, believes that cryptocurrency can be used as an instrument of economic empowerment, providing an avenue to connect to the global monetary system.  

Digital X 

Closer to home, publicly listed Australian technology company, DigitalX, added $35m AUD worth of Bitcoin to its balance sheets in March of 2021. The company is in a unique position as the only ASX-listed company to own Bitcoin.  

What are Entity accounts on Swyftx 

Swyftx offers three types of entity trading accounts that are designed to suit a variety of investment requirements. These three accounts include company accounts, trust accounts and self-managed super funds.  

Company accounts provide businesses with the opportunity to invest in cryptocurrency through their business or corporate entity. Companies will be able to securely trade over 300+ cryptocurrencies and benefit from Swyftx’s global liquidity network to ensure they can make large volume trades at any given time.  

A trust account allows Swyftx users to invest in cryptocurrency through their trust. Crypto investments can often go undiscovered, putting cryptocurrency into a trust make the investments known to beneficiaries. A self-managed super fund (SMSF) with Swyftx lets you buy Bitcoin and other cryptocurrencies to help build your retirement portfolio. Australians are taxed 0% on any income generated from assets held in an SMSF  

When you create an entity account with Swyftx you’ll have access to our array of trading resources. These resources allow you to track your portfolio, gather transaction reports and earn interest on your investments. 

How to set up an entity trading account with Swyftx 

To begin trading cryptocurrency through your company you will first need to have a personal Swyftx trading account. Once you have access to your own Swyftx account you will need to apply for any entity/company trading account. To learn more about Swyftx’s company and trust accounts book a free consultation with one of our industry-leading account management representatives.  

Applying for an entity account 

From the main dashboard of the Swyftx desktop website, head to your Swyftx profile on the sidebar. Then select the ‘about’ section, as seen below. 

You will then be taken to a screen with detail about your Swyftx account. In this section will be the entity application, press “submit details” to begin the application process.  

After pressing “submit details” you will be taken to a step-by-step application form. Once the form is submitted, our account management team will carefully review the information provided. Please note, you may be contacted for further information. When the account management team have approved your application, you and all other parties involved will be sent an invitation via email to join the new entity account.  

Learn how to deposit crypto from Binance to Swyftx.

Summary 

An increasing number of companies are utilising Bitcoin and cryptocurrency for both investment and operational purposes. Cryptocurrency has the potential to provide businesses with new avenues for facilitating payments and accessing new liquidity pools that could not be accessed through traditional investments.