KPMG Canada has become the latest publicly traded company to add cryptocurrencies to its balance sheet. The Canada-based branch of the multinational full-service audit, tax, and advisory firm today announced that it was now accumulating digital assets including Bitcoin and Ether. Since Michael Saylor’s MicroStrategy added Bitcoin to its balance sheet, dozens of companies have followed suit in what industry participants view as a growth area for the space. KPMG has also established a governance committee to provide oversight and approve the treasury allocation.
The Canadian arm of the accounting giant said in a statement that the investment reflected their “belief that institutional adoption of crypto assets and blockchain technology will continue to grow and become a regular part of the asset mix.”
We have just completed an allocation of cryptoassets to our corporate treasury, our firm’s first of its kind investment in the asset class. This includes Bitcoin and Ethereum tokens, and carbon offsets to maintain a net-zero carbon transaction: https://t.co/32hsKbnGuC
— KPMG Canada (@KPMG_Canada) February 7, 2022
This investment in Bitcoin and Ether is KPMG’s first direct crypto investment. And it is clear that they know what they are getting into. Their goal with this is to stay with the trend of the blockchain world and not miss out on growth opportunities. KPMG has also kept in mind that investing in crypto has a carbon footprint. Hence, their investment also includes carbon offsets to maintain the firm’s ESG (Environmental, social, and governance) commitments.
A governance committee oversees the company’s treasury policy, which includes representatives from numerous divisions, including finance, risk management, and tax. Before opting to add digital assets to its portfolio, KPMG claimed it “performed a detailed risk assessment,” which included examining tax consequences.
Kareem Sadek, KPMG Canada’s advisory partner, crypto assets and blockchain services co-leader, added that the company would branch out to other industries in the crypto world.
“We’ve invested in a strong crypto assets practice and we will continue to enhance and build on our capabilities across decentralised finance (DeFi), non-fungible tokens (NFTs) and the metaverse, to name a few,” he said. “We expect to see a lot of growth in these areas in the years to come.”
KPMG Canada is the latest big company to add cryptocurrency to its balance sheet. Software firm MicroStrategy kicked off the trend in August 2020, when it bought $250 million (roughly Rs. 1,866 crore) worth of Bitcoin. It has continued to buy Bitcoin ever since and currently holds $5.5 billion (roughly Rs. 41,052 crore) in the biggest digital asset, according to Bitcoin Treasuries data.