Big Four member KPMG has recently diversified their Canada investment portfolio by purchasing an undisclosed amount of cryptocurrency, namely Bitcoin (BTC) and Ethereum (ETH).
KPMG is among an expanding group of companies to make investments in cryptocurrency. Though the exact amount remains undisclosed, the firm’s blockchain sector invests “for the future” even as BTC and ETH fail to reach new heights since their all-time highs last year.
KPMG has always held a diversified portfolio, it is not a member of the Big Four for lack of risks. However, the expansion of their assets to include cryptoassets may help legitimize Bitcoin as a weighty asset for corporations – changing the landscape of the corporate balance sheet.
As a highly respected accounting firm, KPMG has legitimacy in the financial global market. But so too, do other corporations investing in Bitcoin, including, but not limited to, Tesla and the financial services company Block Inc. (formerly Square). Is there a difference in KPMG’s investment in crypto from these other companies that just might change the corporate investment landscape? There just might be.
Founded in the late 1980s, KPMG has over a decade on the aforementioned companies in both experience and public trust. While companies like Tesla and Block Inc., which are both over a decade younger than KPMG, entered into the crypto-market fairly early, KPMG has waited until recently to do so, – thus allowing more time for observation and market analysis. Additionally, KPMG has taken measures prior to purchasing to produce a cost-benefit analysis via an internal governance committee, ensuring proper risk mitigation prior to fund allocation.
Kareem Sadek, blockchain leader for KPMG Canada, envisions the future of the firm’s assets in relationship with the internet – namely, focusing on a sustainable long-term roadmap for the company and its clients and their participation in decentralized financial institutions (DeFi). Given the recent introduction of the Metaverse by Meta (formerly Facebook), the prominent emergence of NFT’s, and developing innovations in crypto-mining, KPMG’s crypto investment might just be the push other corporations need to shift the future direction of corporate balance sheets.