MicroStrategy Giant Acquires $250,000,000 Worth of Bitcoin as Its Safe Haven Asset
As reported by Businesswire, major publicly-traded company MicroStrategy has acquired 21,454 BTC, choosing it as a primary reserve asset.
MicroStrategy is the biggest publicly-traded firm working in the business intelligence sphere. It has announced that today it acquired 21,454 BTC, paying an aggregate price of $250 million with all fees included.
By investing this large amount in Bitcoin, MicroStrategy publicly recognized BTC as a proper investment tool that may be better than cash. In addition, the company chose BTC as the major holding in its treasury reserve strategy, according to CEO Michael J. Saylor.
The CEO added that spending such a large amount of funds on Bitcoin is now part of the company’s new strategy to allocate capital in order to provide shareholders with a long-term value asset.
Saylor also said that the company was driven to this decision partly by current stimulus measures enforced by the U.S. government, as well as prevailing political and economic uncertainty and the hyperinflation that is likely to follow the current crisis.
They concluded that BTC was able to serve as a good inflation hedge. They believe it has the ability to make yields on investment higher than other assets can offer.
Among the qualities that attracted MicroStrategy were BTC's global acceptance, great technical utility and brand recognition.