As reported by Businesswire today on August 11, 2020, the NASDAQ-listed business intelligence company MicroStrategy has bought 21,454 BTC by investing a massive amount of $250 million in it. In the announcement, the company says that this investment has been made as a part of its specified capital allocation strategy. The planned two-way capital allocation strategy was revealed by the company later in July according to which the company aims to invest $250 million in assets while $250 million was allocated for the purchase of stocks.
Bitcoin adopted as Primary treasury reserve asset
MicroStrategy has adopted the world’s largest cryptocurrency as a ‘primary treasure reserve asset’ as announced by the company. According to the company, they were viewing ‘various asset classes’ for making their investment but they preferred to choose the major digital currency Bitcoin (BTC) as their safe-haven asset over others due to the unique qualities it possesses.
While sharing his view on this investment, the CEO of the company Michael Saylor said that this investment from MicroStrategy is the reflection of the company’s belief in Bitcoin as a store of value. He said:
“This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash. 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.”
Saylor also has explained why they decided to make an investment in Bitcoin and said that it was driven by some factors that were having a major impact on their business and economy. Due to these factors, they had to take this step.
MicroStrategy CEO calls Bitcoin ‘Superior to Cash’
More interestingly, the MicroStrategy’s CEO has called the largest cryptocurrency in the world Bitcoin ‘superior to cash’. Adding more to his comments, Saylor said that MicroStrategy clearly sees Bitcoin as a legit cryptocurrency:
“MicroStrategy has recognized Bitcoin as a legitimate investment asset that can be superior to cash and accordingly has made Bitcoin the principal holding in its treasury reserve strategy.”
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