A modified 8-K form filed with the United States SEC [Securities and Exchange Commission] revealed MicroStrategy’s decision to dispense with cash bonuses and instead use BTC to compensate those on the firm’s board. The modified filing explains as:
“Going forward, non-employee directors will receive all fees for their service on the Company’s Board in bitcoin rather than cash.”
MicroStrategy has dollar-cost averaged into Bitcoin since the end of last year, purchasing small amounts here and there until it eventually accumulated a fund of over $4 Bln worth of BTC.
The 8-K form added that MicroStrategy’s belief that Bitcoin could function as a reliable store value as well as commended its open-source nature, which suggests it isn’t beholden to anybody’s corporate entity.
“In approving bitcoin as a sort of compensation for Board service, the Board cited its commitment to bitcoin given its ability to function a store value, supported by a strong and public open-source architecture, untethered to sovereign monetary policy,” outlines the filing.
The dollar amount of bonuses paid to board members won’t change under the new system. Additionally, the dollar value of the bonus in question is going to be converted to Bitcoin at the time of the payment and transferred to the director’s wallet. The filing adds as:
“Under this modified arrangement, the number of Board fees payable to non-employee directors remains unchanged and can be nominally denominated in USD. At the time of payment, the fees are going to be converted from USD into bitcoin by the payment processor then deposited into the virtual wallet of the applicable non-employee director.”