Berkshire Hathaway, led by investment guru Buffett, has recently increased its stake in VeriSign, becoming its largest shareholder. Who is VeriSign that can make Berkshire, which sold stocks and holds a large amount of cash this year, continue to increase its stake?
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 patents related to blockchain, primarily involving technology that connects domain names with blockchain addresses. For example, selling and transferring 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 purchased shares of the company in the fourth quarter of 2012.
VRSN's net margin reaches 51%
According to a document submitted by Berkshire Hathaway to the SEC last week, the company increased its purchase of 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 financial data for the third quarter, VeriSign's net margin is as high as 51%. Although its stock price performance this year has not matched the overall tech sector, the company's monopoly position in the domain registration market and stable revenue sources still give it long-term investment value. This investment also reflects Berkshire’s emphasis on core technology infrastructure, and during a time when it is flush with cash and has sold a large amount of Apple stock, the stocks that investment guru Buffett continues to invest in also particularly capture investors' interest and attention.
In addition to VeriSign, Berkshire has also increased its stakes in Occidental Petroleum and satellite broadcasting company Sirius XM.
(Is Berkshire flooded with cash, with large amounts of money pouring into the leveraged market, leading to an irrational boom?)
This article Berkshire increases its stake in VeriSign to become the largest shareholder. Has Buffett also taken a liking to its blockchain patents? Originally appeared in Chain News ABMedia.