Berkshire Hathaway, led by investment guru Buffett, recently increased its stake in VeriSign, becoming its largest shareholder. Who is VeriSign that can compel Berkshire, which has sold stocks and holds a large amount of cash this year, to continue increasing its investment?
VeriSign holds multiple blockchain patents.
VeriSign is a domain registration service and internet infrastructure provider, founded in 1995, primarily responsible for managing top-level domains such as .com and .net, ensuring the security, stability, and reliability of the Domain Name System (DNS).
According to reports, VeriSign has obtained multiple blockchain-related patents, primarily involving technologies that connect domain names with blockchain addresses. For example, conducting sales and transfers of domain names on the blockchain. This technology allows users to use traditional domain names within a blockchain environment and convert them into on-chain user addresses.
VeriSign is known for its high profit margins and stable business model, making it a focus for many investors. Berkshire first purchased shares of the company in the fourth quarter of 2012.
VRSN's net margin reaches 51%
According to a filing submitted to the SEC by Berkshire Hathaway last week, the company increased its investment in VeriSign by $28.55 million over three trading days ending on 12/24. With previous holdings, Berkshire now owns 13.7% of VeriSign's issued shares, valued at nearly $2.7 billion, making it the largest shareholder.
According to its third-quarter financial data, VeriSign's net margin is as high as 51%. Although the company's stock performance this year has not matched the overall tech sector, its monopolistic position in the domain registration market and stable revenue sources still provide long-term investment value. This investment also reflects Berkshire's emphasis on core technology infrastructure, especially during a period when it has ample cash and sold a large amount of Apple stock, making individual stocks that Berkshire invests in particularly intriguing for investors.
In addition to VeriSign, Berkshire also increased its stakes in Occidental Petroleum and satellite broadcasting company Sirius XM.
(With Berkshire flush with cash and large funds flowing into leveraged markets, is an irrationally exuberant bubble arriving?)
This article discusses Berkshire Hathaway increasing its stake in VeriSign, becoming its largest shareholder. Did Buffett also see value in its blockchain patents? Originally appeared in Chain News ABMedia.