Sequoia Holdings, an employee-managed and owned provider of high-end software development and engineering tools, says it will allow its workers to receive part of their salary in Bitcoin (BTC), the flagship cryptocurrency.
Sequoia stated that it will be working with a third-party payroll processing company in order to withhold taxes and then convert the remaining funds into digital currency, which can be held in a digital wallet managed or administered by the processor.
The company compared the new option to how a worker would defer a certain amount of their earnings toward a 401(k) retirement savings plan (although the deferral is after taxes).
Richard Stroupe, CEO at Sequoia, stated:
“Cryptocurrency has emerged as an important alternative to traditional investments like stocks and bonds. We’re proud to give the members of our team the ability to easily invest in cryptocurrency and build their savings.”
Bitcoin had recently seen its value surge from well below $4,000 in March 2020 (due to the broader financial market crash following the COVID outbreak) to nearly $42,000 in early January 2021. However, the BTC price has now corrected to around $33,000 at the time of writing.
With the Bitcoin and larger cryptocurrency markets going through a historic rally, the UK’s Financial Conduct Authority (FCA) had recently cautioned that investors should be aware of the significant risks involved in trading these speculative assets. The FCA had warned that it’s possible investors could lose their entire invested capital in cryptocurrencies that aren’t backed by any central government entity.