While some enterprises like Tesla are broadening their reach to bitcoin, the public American software enterprise specialized in big data analytics – Palantir Technologies Inc, is betting on gold. The company has disclosed the investment of $507 million in 100-ounce gold bars in its fiscal Q2 earnings statement in August. Revenue has increased for two consecutive quarters. The possibility is that it could also invest in cryptos.
The company has grown its cash richness with stock sales. It is now investing in early-stage customers by tieing up with startups and corporate partnerships. Twenty new customers are joining the company in the fiscal Q2.
The Decision in response to economic conditions!
This year inflation is a concern in the US, and sometimes gold is used as a hedging tool against inflation. For the first time last year, the price of an ounce of gold has crossed the $2,000 mark as the federal government stimulus efforts are continuing. This move of buying gold indicates that the company with an upside growth graph has stashed cash in an unconventional asset due to skepticism of economic situations due to the pandemic and governments’ response.
The company’s ‘Win-Win’ Plan
Palantir has framed sound relationships with startups with their investment strategy to add them to their client list. The company has purchased many entities’ shares, revealed in the 10-Q last week, including SPACs and other private and public entities.
The entities associated with Palantir’s investing plan include Sarcos Robotics, Celularity, Babylon Health, Boxed, Wejo, Lilium, Roivant Sciences, Pear Therapeutics, and two other entities that indulge in mobility and autonomous vehicles business. This exposure is benefitting the company with some happening emerging technologies. The company is likely to make revenue of $428 million.
As per the company, their gold purchase is initially to be stored and protected in a third-party facility located in the northeastern US that facilitates the company to take its physical possession at any time with reasonable notice.
The Palantir shares declined on Tuesday’s close, at $23.97.