Billion Dollar Publicly-traded MicroStrategy Buys 21,454 Bitcoin as a Reserve Asset

A fortnight after announcing its plan to invest in Bitcoin, MicroStrategy purchased $250 million worth of BTC which the CEO says is digital gold and superior to cash and asset class for long-term value.

MicroStrategy is now taking a deep dive into the world of bitcoin.

The $1.2 billion Nasdaq listed software company has officially announced its position in the largest digital asset. A fortnight after announcing to invest in bitcoin as an inflation hedge, the company has purchased 21,454 BTC at an aggregate price of $250 million, inclusive of fees and expenses.

As we reported, in its earnings call on July 28, 2020, the company shared its bitcoin investment plans as part of its two-pronged capital allocation strategy to “maximize long-term value for our shareholders,” said Michael J. Saylor, CEO, MicroStrategy Incorporated.

According to Saylor, it is their investment belief that bitcoin is a “dependable store of value and an attractive investment asset,” that has more long-term price appreciation potential than holding cash. He said,

“Since its inception over a decade ago, Bitcoin has emerged as a significant addition to the global financial system, with characteristics that are useful to both individuals and institutions.”

The company recognizes the digital asset as “a legitimate investment asset that can be superior to cash” as such giving it a principal holding in its treasury reserve program.

It has been after months of deliberation that the company decided to allocate its capital into bitcoin, revealed the company. The decision was in part driven by macro factors that are creating long-term risks for their investments.

Economic and public health crisis, unprecedented government financial stimulus measures including QE around the world, and global political and economic uncertainty are the factors listed by the company that have a “significant depreciating effect on the long-term real value of fiat currencies and many other conventional asset types.”

And bitcoin provides “not only a “reasonable hedge against inflation but also the prospect of earning a higher return than other investments,” said Saylor.

According to the company, the world’s leading digital asset is a digital gold that is stronger, smarter, harder, and faster than “any money that has preceded it.” The CEO said,

“We find the global acceptance, brand recognition, ecosystem vitality, network dominance, architectural resilience, technical utility, and community ethos of Bitcoin to be persuasive evidence of its superiority as an asset class for those seeking a long-term store of value.”

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AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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