Alexander Karp, CEO of Palantir Applied sciences Inc.
Whereas some firms like Tesla are diversifying into bitcoin, knowledge analytics software program firm Palantir is betting on gold. Palantir purchased $50 million in gold bars in August, the corporate disclosed in its newest earnings assertion.
The transfer displays a rising firm stashing money in an unconventional asset in response to financial uncertainty spurred by the coronavirus pandemic and governments’ response to it.
The value of an oz of gold crossed the $2,000 mark for the primary time final yr because the pandemic worsened and U.S. authorities stimulus efforts continued. This yr traders have extra loudly voiced issues about inflation, and gold is usually seen towards inflation, though costs are down 7% for the yr. Some traders have thought cryptocurrencies may additionally serve that position.
“Throughout August 2021, the Firm bought $50.7 million in 100-ounce gold bars,” Palantir stated within the Aug. 12 earnings assertion for its fiscal second quarter. “Such buy will initially be stored in a safe third-party facility positioned within the northeastern United States and the Firm is ready to take bodily possession of the gold bars saved on the facility at any time with cheap discover.”
Palantir didn’t reply to a request for touch upon the funding.
After finishing a direct itemizing and debuting on the New York Inventory Trade in September, Palantir is now debt-free, the corporate’s finance chief, Dave Glazer, instructed analysts on a convention name final week. Income has accelerated for 2 consecutive quarters, with 20 new clients becoming a member of within the fiscal second quarter.
Palantir is investing to develop, bringing on greater than 100 salespeople previously two quarters, and plans name for hiring to proceed at a quick tempo, Glazer stated.
The corporate stays unprofitable, because it was as a privately held firm. In the meantime, its provide of money has been rising, partly due to inventory issuance and proceeds from the train of inventory choices.
That has given Palantir a possibility to put money into its personal clients, together with early-stage firms, that are very completely different from present authorities clients such because the U.S. Division of Well being and Human Providers. Among the many investments are firms which have gone public by mergers with special-purpose acquisition firms, reminiscent of AdTheorent, Quick Radius, FinAccel and Tritium, in accordance with the earnings assertion.
It is doable that following the gold funding, Palantir might develop into cryptocurrencies. In Might, after Glazer was requested on an analyst name if the corporate might have bitcoin or different currencies on its steadiness sheet, he stated, “The quick reply is, sure, we’re pondering about it, and we have even mentioned internally.”
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