Warren Buffett's Berkshire Hathaway has recently increased its stake in VeriSign, becoming its largest shareholder. What is VeriSign, that it can compel Berkshire, which has a large amount of cash from selling stocks this year, to continue investing?

VeriSign owns 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).

Reports indicate that VeriSign has obtained multiple patents related to blockchain, primarily involving technology that connects 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 in a blockchain environment and convert them into on-chain user addresses.

VeriSign is known for its high profit margins and stable business model, attracting the attention of many investors. Berkshire first bought shares of the company in the fourth quarter of 2012.

VRSN net profit margin reaches 51%

According to a document submitted by Berkshire Hathaway to the U.S. Securities and Exchange Commission (SEC) last week, the company increased its investment in VeriSign by $28.55 million over three trading days ending December 24, bringing its total holdings to 13.7% of VeriSign's issued shares, worth nearly $2.7 billion, making it the largest shareholder.

According to its third quarter financial data, VeriSign's net margin reaches 51%. Although this year's stock performance has not kept pace with the overall tech sector, the company's monopoly position in the domain name registration market and stable revenue sources still give it long-term investment value. During a time when Buffett is selling a large amount of Apple stock while holding a lot of cash, the stocks that attract his additional investment also particularly pique the interest and attention of investors.

In addition to VeriSign, Berkshire has also increased its stake in Occidental Petroleum and Sirius XM.

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'Net margin 51%! Berkshire increases investment in VeriSign, does Buffett also value blockchain patents?' This article was first published in 'Crypto City.'