GSTechnologies Ltd (LSE:GST) shares rose 17% on Wednesday after the company said it would begin holding a significant portion of its cash reserves in Bitcoin, citing the cryptocurrency’s liquidity and potential as a store of value.
The fintech group, which operates the Bake Cryptocurrency Platform and focuses on digital asset services, has formally adopted a new treasury policy allowing directors to allocate cash into Bitcoin at their discretion.
The company said the shift is intended to reduce counterparty and exchange rate risks while supporting shareholder value.
GST added that the decision supports its GS Money strategy and reflects its growing presence in blockchain-based financial services.
Management said Bitcoin offers the characteristics of cash while better suiting the needs of a firm focused on the digital economy.
The stock rose 0.12p to 1.32p as it joined a growing cohort of companies populating this newly emerging sector that includes early pace setters such as Vinanz Ltd (LSE:BTC, OTCQB:VINZF) and The Smarter Web Company (AQSE:SWC).