KPMG Canada Announces Bitcoin and Ethereum Purchases On Its Balance Sheet

More and more corporates seems to be willing to gain exposure to Bitcoin and digital assets. This time it’s the big-four consulting giant KPMG which has decided to add Bitcoin and Ethereum to its balance sheet.

KPMG made this announcement on Monday, February 7, marking the investment giants first direct investment in cryptocurrencies. Along with Bitcoin and Ethereum, KPMG has also chosen net-zero carbon offsets to maintain a zero-carbon transaction and stick to its environmental, social and governance (ESG) commitments.

Speaking of this development, Benjie Thomas, Canadian Managing Partner, Advisory Services, KPMG Canada said: "Cryptoassets are a maturing asset class. Investors such as hedge funds and family offices to large insurers and pension funds are increasingly gaining exposure to cryptoassets, and traditional financial services such as banks, financial advisors and brokerages are exploring offering products and services involving cryptoassets. This investment reflects our belief that institutional adoption of cryptoassets and blockchain technology will continue to grow and become a regular part of the asset mix”.

KPMG already has a governance committee in place that seeks to provide oversight and approve the treasury allocation. The committee includes stakeholders from KPMG’s risk Management, Finance, Advisory, Audit and Tax divisions.

The committee has also undertaken and completed a rigorous risk assessment process that includes review of reuptstional, regulatory, and custodial risks. KPMG specialists have also assessed the tax and accounting implications of the crypto purchase transaction.

Kareem Sadek, Advisory Partner, Cryptoassets and Blockchain Services co-leader, KPMG in Canada said: "The cryptoasset industry continues to grow and mature and it needs to be considered by financial services and institutional investors. We've invested in a strong cryptoassets practice and we will continue to enhance and build on our capabilities across Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs) and the Metaverse, to name a few. We expect to see a lot of growth in these areas in the years to come”.

Last year, Tesla created a rage by announcing its Bitcoin announcement in February. In its latest report, Tesla announced that it is holding $2 billion worth of Bitcoin on its balance sheet. Other corporate players like MicroStrategy have also been adding BTC to their balance sheet frequently. In fact, MicroStrategy holds a staggering 125,000 BTC as of date.