One of the largest business intelligence firms in the United States, MicroStrategy, has acquired a total of $250 million worth of Bitcoin, confirming that the cryptocurrency has become the company's main reserve asset.
In a release recent, MicroStrategy Incorporated, a leading business intelligence firm, confirmed the acquisition of a total of $250 million in Bitcoin, making the cryptocurrency its main reserve asset. The total amount of Bitcoin acquired by the firm amounts to 21.454 BTC, an investment that, as its CEO points out, Michael saylor, reflects its firm belief that Bitcoin is a safe and reliable store of value, as well as a very attractive investment asset with ample potential for long-term appreciation.
MicroStrategy Incorporated is a publicly traded company (Nasdaq: MSTR) with a market capitalization of over $1.200 billion and is known for holding a cash reserve of over $500 million. Half of this cash reserve, according to the company's statement, was used to purchase BTC. Saylor also states in the statement that:
“MicroStrategy observed distinctive properties of Bitcoin that led it to believe that investing in the cryptocurrency would provide not only a reasonable hedge against inflation, but also the potential for higher returns than other investments.”
Thus, in the eyes of MicroStrategy and many other investment companies, Bitcoin has become not only a trusted cryptocurrency, but also an investment asset and a safe hedge against inflation.
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Bitcoin is part of a company's business strategy
Michael Saylor, for his part, said that the company's investment in Bitcoin is part of its capital allocation strategy, which seeks to maximize the value of shareholders and investors in the long term.
“This investment reflects our belief that Bitcoin, as the most widely adopted cryptocurrency in the world, is a reliable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.”
Saylor also stated that the decision to invest in Bitcoin was driven by the current global economic and trade situation, and that it has considered the existence of possible future risks that threaten its corporate treasury program. According to the company's CEO, government stimulus measures to deal with the current crisis, political uncertainty and other factors are a trigger for future and significant depreciation in the value of fiat currency and other conventional assets.
MicroStrategy also claims that it has been discussing the market-leading cryptocurrency for several months, and that after a thorough analysis it recognizes that Bitcoin has great potential and unique characteristics that are useful for both institutional and individual investors, which is why it adopted Bitcoin as a fundamental part of its treasury reserve strategy. With this initiative, the company hopes that Bitcoin can provide greater and better investment opportunities to shareholders, guaranteeing high returns and preserving the value of the company's capital in the long term, compared to keeping the reserves in cash.
Among MicroStrategy's recognitions regarding Bitcoin, it stands out that the cryptocurrency is the new "digital gold” and a coin of “global acceptance".
About MicroStrategy Incorporated
MicroStrategy is one of the largest independent publicly traded business intelligence companies. The company has a vision to deliver modern analytics through an open, comprehensive enterprise platform used by many of the most recognized brands in the Fortune Global 500. MicroStrategy's enterprise platform features HyperIntelligence, a breakthrough technology that overlays actionable business data on enterprise applications to help users make smarter, faster decisions.
MicroStrategy, HyperIntelligence, and Intelligence Everywhere are registered trademarks of MicroStrategy Incorporated in the United States and several other countries.
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