A US-based company, well known for data mining and providing analytics software, Palantir Technologies Ltd., has invested in gold and is reportedly considering investing in cryptocurrency. The tech firm Palantir has been unable to make a profit as of late, with reports citing the company stocks falling from $26 to below $19 (NYSE: PLTR). Palantir’s investment in gold and cryptocurrency sights the company’s approach to sustaining profits in the market in the long term.
What Exactly Does Palantir’s Investment in Gold & Cryptocurrency Mean?
Since its inception in 2003, Palantir has been unable to make a profit, with stock prices falling drastically. So, when a company like Palantir technologies invests in a tangible asset like gold, in contrast to other tech companies betting their money on cryptocurrency, it begs to answer a question as to why?
According to reports, Palantir technologies has bought up $50 million worth of gold bars to keep in its reserve in response to uncertain economic conditions shaped by the Covid-19 pandemic. Irrespective of remaining unprofitable, Palantir has seen an increase in cash supply caused by both stock issuance and returns from stock options.
A report published by JPMorgan shows monetary inflow has streamed out of gold and into bitcoin. As cryptocurrency is considered the future of digital assets, trends show this is likely to keep on happening. As a result, Palantir’s investment in gold and cryptocurrency could very well signify the company keeping both its options open for future gains.
Reports state that Palantir is keen on investing in cryptocurrency, now that its reserves of gold bars have been bought. The company has already announced it is creating credible anti-money laundering platforms and is willing to accept crypto as payment.
Current Situation of Palantir Technologies
Palantir has survived in the market because of government contracts. A tech company, which was born after the 9/11 attacks, Palantir began working closely with government bodies and intelligence agencies, providing counterterrorism information through their analytics platform.
As of present, the company, despite its claim to have broadened its network globally, still continues to hold government contracts, especially providing an ‘intelligence interpretation platform’ to the US, to us by US Homeland Security.
In light of the pandemic, Palantir Technologies have seen a new form of contract with the US government. Reports in the US procurement records reviewed by NBC News stated Palantir has been given government contracts worth more than $42 million, specifically with federal agencies to tackle the responses from the pandemic situation. Palantir in response had created a data analytics platform for the government to track the spread of the coronavirus across the US.
Wrap Up
Palantir’s investment in gold and cryptocurrency can be considered a smart move to sustain in the market, where other players are heavily progressing and expanding their operations beyond traditional means.
By staying unprofitable and taking advantage of the pandemic and government contracts, Palantir has situated itself in a position to be safe by holding gold bars should their value further increase in the future.
Irrespective of the uncertainties of what will come after the pandemic is over, investing in both a tangible and digital asset, Palantir Technologies Ltd. has managed to keep both feet on the ground should further economic conditions arise.
