Leading business intelligence firm MicroStrategy has recently purchased 21,454 Bitcoin [BTC], today, effectively pouring all $250 Mln of its planned inflation-hedging funds into the leading cryptocurrency.
Disclosing its bitcoin buy alongside an equivalent stock buyback in a Tuesday SEC filing, MicroStrategy, a NASDAQ-listed software firm worth over $1.2 Bln, said the cryptocurrency offered a “reasonable hedge against inflation” within its recent official press release.
“This investment reflects our belief that bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of usefulness and an attractive investment asset with more long-term appreciation potential than holding cash,” said chief executive Michael J. Saylor.
Saylor cited forces working to weaken fiat currencies – coronavirus, global quantitative easing measures, political and economic uncertainty – but also the technical and qualitative aspects that he said give the bitcoin blockchain strength.
“We find the worldwide acceptance, brand recognition, ecosystem vitality, network dominance, architectural resilience, technical utility, and community ethos of bitcoin to be persuasive evidence of its superiority as an asset class for those seeking a long-term store useful,” Saylor added.
The capital allocation quickly fulfills Saylor’s late July promise to shareholders that his company, which he founded earlier in 1989, would repurchase $250 Mln in stock and invest an additional $250 Mln in gold and bitcoin over upcoming period of a year. The assumption was that these and other “alternative investments” would protect MicroStrategy’s dollar-heavy balance records.
It is now clear that around half the $500 Mln bet turns entirely on bitcoin. MicroStrategy “accordingly has made bitcoin the principal holding in its treasury reserve strategy,” Saylor added.