With this, MicroStrategy can increase its bitcoin reserves to more than the initial $250 million the company invested in the cryptocurrency in mid-August.
In a release recent, the MicroStrategy Board of Directors, the American business intelligence firm, reported that Bitcoin (BTC) will become the company's first reserve currency. The announcement is part of the new reserve policies that the company adopted as of September 11, and which indicate that Bitcoin will be the main treasury reserve asset on an ongoing basis.
Under MicroStrategy's new policy, treasury reserve assets will consist of: Cash, in the equivalent of short-term investments that are in the company's possession and that exceed working capital needs; and Bitcoin, which will act as the company's main reserve asset. Likewise, MicroStrategy points out that the amount of this cryptocurrency under its power will be the one that serves as the reserve currency, and which will be subject to market conditions and the anticipated needs of the negotiation with cash assets, including the repurchase of shares.
For its part, the United States Securities and Exchange Commission (SEC) notes that as a result of this new reserve policy, MicroStrategy could increase its bitcoin holdings beyond the $250 million investment the company made to on August 11 of this year.
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Bitcoin as a safe haven strategy
When MicroStrategy announced The investment of 50% of its cash reserve in Bitcoin ensured that it did so because it considered Bitcoin as a safe and stable haven of value against the devaluation of fiat currencies. The statements of the CEO of MicroStrategy, Michael saylor, reflected the company's confidence in the market-leading cryptocurrency, and reaffirmed its belief that Bitcoin is a very attractive investment asset for investors and that it has ample long-term appreciation potential.
Likewise, Saylor expressed that the company carried out a detailed and in-depth analysis of the properties and characteristics that Bitcoin has before making such an important investment. This detailed study was precisely what led the company to believe that investing in cryptocurrency provides a reasonable hedge against money inflation, and the possibility of obtaining a much higher return than with traditional investments and assets.
To date, MicroStrategy shares have been doubled by smaller companies, such as Snappa, a Canadian company that recently confirmed the allocation of your cash reversals in Bitcoin, as a way to protect your funds against the devaluation of the dollar and the economic uncertainty experienced worldwide. The actions of these companies demonstrate the acceptance and importance that Bitcoin and cryptocurrencies are acquiring among institutional investors and Wall Street.
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