As part of its new corporate treasury strategy, Benzinga, a financial media and data provider, has begun crypto investment.
What Happened: Benzinga has collaborated with crypto brokerage firm TradeStation Crypto, a subsidiary of TradeStation Group, Inc., to allocate a portion of its cash reserves to cryptocurrency.
“As crypto news grows in popularity, Benzinga is making a short-term and long-term financial investment in digital assets,” said the company in a press release.
Benzinga could earn up to 6% per year on its crypto holdings through its TradeStation crypto account.
Why It Matters: “We are seeing increased participation in crypto investing at the corporate level, and we’re proud to educate and provide companies like Benzinga with the tools needed to invest in crypto assets,” said James Putra, Senior Director, Product Strategy at TradeStation Crypto.
Indeed, the media platform has joined a growing list of corporations that have incorporated Bitcoin (CRYPTO: BTC) and other cryptocurrencies into their treasury management strategy.
To date, 21 publicly traded companies have some of their cash reserves in Bitcoin. This is led by MicroStrategy Incorporated (NASDAQ: MSTR), which owns more than $5.2 billion in Bitcoin, and Tesla Inc (NASDAQ: TSLA), which owns $2.7 billion in the leading digital asset.
“Though not without some added risks, through higher interest rates and a bullish outlook on crypto, Benzinga has the potential to generate more cash in the short-term, while also investing in what could prove to be the monetary system of the future,” said Luke Jacobi, Director of Operations at Benzinga
What Else: Bitcoin has gained nearly 5% in the last 24 hours and is currently trading around $57,300. Overnight, the total crypto market cap increased by more than 9.16 percent, crossing $2.09 trillion for the second time.
Source : PrNewswire