The move reflects a growing company that is storing money in an unconventional asset in response to economic uncertainty spurred by the coronavirus pandemic and governments’ response to it.
The price of an ounce of gold crossed the $ 2,000 mark for the first time last year as the pandemic worsened and the US government’s stimulus efforts continued. This year, investors have voiced their concerns about inflation louder, and gold is sometimes seen as a hedge against inflation, although prices are down 7% for the year. Some investors thought that cryptocurrencies could play this role as well.
“During August 2021, the company purchased $ 50.7 million worth of 100-ounce gold bullion,” Palantir said in the August 12 earnings report for its fiscal second quarter. “Any such purchase will initially be held at a secure third-party facility located in the Northeastern United States and the Company is able to take physical possession of the gold bullion stored at the facility at any time with reasonable notice. “
Palantir did not respond to a request for comment on the investment.
After completing a direct listing and debuting on the New York Stock Exchange in September, Palantir is now debt-free, the company’s chief financial officer Dave Glazer told analysts on a conference call last week. Sales have accelerated for two consecutive quarters, with the arrival of 20 new customers in the second fiscal quarter.
Palantir is investing to grow, hiring more than 100 salespeople in the past two quarters, and plans to continue hiring at a rapid pace, Glazer said.
The business remains unprofitable, as it was as a private company. Meanwhile, its liquidity supply has grown, in part through the issuance of shares and the proceeds from the exercise of stock options.
This has given Palantir the opportunity to invest in its own clients, including start-ups, which are very different from existing government clients such as the US Department of Health and Human Services. Among the investments are companies that have gone public through mergers with specialist acquisition companies, such as AdTheorent, Fast Radius, FinAccel and Tritium, according to the income statement.
It is possible that after investing in gold, Palantir will expand into cryptocurrencies. In May, after Glazer was asked on an analyst call if the company could have bitcoin or other cryptocurrencies on its balance sheet, he said, “The short answer is, yes, we do. let’s think about it, and we’ve even discussed it internally. “
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