American business intelligence software company and largest institutional Bitcoin investor MicroStrategy partners with Fidelity Investments to become the first public company to offer its employees the option to invest in BTC through retirement plans.
MicroStrategy President Michael Saylor reported on Twitter that the American business intelligence company plans to offer its employees the option to invest in Bitcoin as part of their 401(k) retirement plans.
MicroStrategy will partner with Fidelity Investments, a pension fund and asset management company, to create a Bitcoin account for its employees, allowing them to allocate a portion of their retirement plan to the cryptocurrency. According to the report, employees can allocate up to 20% of their retirement funds to BTC.
Saylor, who has been one of the biggest proponents of Bitcoin since 2020, noted that his company will become the first public company to allow its employees to invest in Bitcoin.
Since August 2020, Saylor's company has been implementing an innovative investment strategy, which consists of accumulating bitcoins with all of its surplus cash. This has led MicroStrategy to become, today, the largest institutional investor in Bitcoin, holding more than 129.000 BTC on its balance sheet.
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MicroStrategy, pioneer in the institutional adoption of Bitcoin
MicroStrategy is known in the crypto world for being the first major public company to invest in Bitcoin. Now, as Saylor noted on Twitter, the company is also looking to be the first to offer its employees the chance to invest in the market's leading cryptocurrency.
As Fidelity Investments said in a recent release, MicroStrategy is the first company to adopt its new digital asset account (DAA), which is designed to offer employees direct access to cryptocurrencies. Fidelity Investments said its new DAA accounts, which currently only offer access to Bitcoin, will help employers meet their employees' growing demand for this crypto asset.
In addition to this, Michael Saylor's company is also Pioneer in the acquisition of loans guaranteed in bitcoin at an institutional levelIn late March of this year, MicroStrategy used 800 BTC to secure a $205 million loan with Silvergate Bank, through its subsidiary MacroStrategy.
The funds from this loan were used by the company to acquire new bitcoins.
How much BTC does this company own?
Based on the circulating supply of Bitcoin in the market, MicroStrategy owns 0,68% of the entire current supply of the cryptocurrency.
The amount of Bitcoin held by the company today, 129.218 BTC, is valued at $4.954 billion, with the cryptocurrency trading at $38.345 per unit at the time of writing.
In his latest report, Saylor said his company had invested a total of $3.970 billion in the purchase of bitcoins, at an average price of $30.700 per BTC. That leaves him with a current profit of $8.345 for each bitcoin invested, or a total of approximately $1.070 billion.
Over the past two years, more companies and institutional investors have been adding BTC to their corporate treasuries. In addition to MicroStrategy, other large companies such as Square (now Block), Tesla, and Galaxy Digital Holdings also hold significant amounts of BTC, although MicroStrategy far outnumbers them.
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