Munich, February 16, 2021.
Given the excessive increase in money supply in both the euro and USD zones, there is legitimate concern about a massive devaluation of fiat money. The cannabis company SynBiotic SE (XETRA; ISIN: DE000A2LQ777 / WKN: A2LQ77) is therefore set to become the first listed company in Germany to hedge against the devaluation of the euro with bitcoin. Hence, SynBiotic SE has started to shift some of its free liquidity into bitcoin.
SynBiotic SE CEO Lars Müller says of the decision: “Our decision focused less on price fluctuations than the risk of devaluation of euro and dollar. 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. For this reason, we have more long-term confidence in bitcoin than in euros or dollars, where a central institution, influenced by politicians, can expand the money supply immeasurably. In addition, the cannabis sector in particular has had very positive experiences with bitcoin as a simple and digital means of payment. Several SynBiotic subsidiaries already accept payments in bitcoin in addition to payments in euros.”
About SynBiotic SE
SynBiotic SE is pursuing a buy-and-build strategy to build a diversified group of companies in the cannabis sector that includes the alternative production of functionally superior cannabinoids and other psychoactive molecules, as well as the development of wellness products for the end customer under their own brands. SynBiotic SE focuses in particular on the synthetic production of cannabinoids, drug development, dietary supplement development and cosmetic products.