The Saudi Central Bank took a key step forward by investing in Strategy, a company owning large amounts of Bitcoin, marking the first time Saudi Arabia indirectly dipped into the world of cryptocurrencies.
The Saudi Central Bank has taken a significant step by investing in Strategy, a company with large holdings in Bitcoin, marking the first time Saudi Arabia has indirectly engaged with cryptocurrencies.
The filing with the SEC on Thursday, August 24th, reveals an interesting development in Saudi Arabia's financial strategy.
It is common knowledge that Strategy is the biggest known corporate Bitcoin portfolio holder, and the bank now has 25,656 shares in the company, according to the report. This follows a broader trend of central banks becoming more open to digital assets, and Saudi Arabia is engaging with this through a minimal investment in Strategy, which is a company that has significant exposure to Bitcoin.
Earlier this year, reports surfaced that Strategy was planning to sell a portion of its valuable Bitcoin holdings to capitalize on the cryptocurrency's remarkable gains. As of December 31st, 2022, Strategy's Bitcoin holdings were estimated to be valued at $256.8 million, a significant portion of the company's total equity capital.
Earlier this year, a report by Bitcoin Magazine indicated that Strategy had sold a portion of its Bitcoin to fund new investments. The report by the SEC also mentions that the Saudi Central Bank had sold 3.2 million shares of Alphabet (GOOGL) in the second quarter, decreasing its holdings in the company.
Saudi Arabia's crypto adoption journey is unfolding rapidly, driven by the youthful and tech-savvy population who are quickly adopting Web3 technologies. A large proportion of young adults and an aggressive focus on technology are heating up Saudi Arabia’s crypto boom.
Vision 2030 serves as the foundation for Saudi Arabia’s initiatives to diversify its economy and progressively reduce the country’s dependency on oil. The strategy calls for enhancing the standard of public services, funding new infrastructure, and directing the use of digital money and blockchain technology.
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