MicroStrategy, the major publicly-traded business intelligence firm, has said in an announcement today that it has paid an amount of $250 million in order to buy 21,454 bitcoins. According to the report of Businesswire, the leading digital currency Bitcoin (BTC) has been selected as a primary reserve currency by MicroStrategy.
A part of an allocation capital strategy
This investment by MicroStrategy shows that the largest business intelligence firm considers Bitcoin as the best safe-haven asset. According to MicroStrategy’s announcement, the company has purchased this large amount of bitcoin as a part of its “allocation capital strategy” which required the company to invest an amount of $250 million.
Such a big investment in Bitcoin from MicroStrategy reveals that the company thinks of the world’s top-ranked digital currency as a store of value according to the CEO of MicroStrategy Michael J. Saylor. While sharing his view in a detailed statement, he claimed that they recognize bitcoin superior to cash.
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His statement reads:
“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. 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.”
According to Saylor, there are some macro factors that have driven their decision to invest in Bitcoin. These macro factors were impacting their business and economic landscape. Saylor says these factors include “among other things, the economic and public health crisis precipitated by COVID-19, unprecedented government financial stimulus measures including quantitative easing adopted around the world, and global political and economic uncertainty”.
Saylor believes that they noticed the unique characteristics of the leading digital coin while considering an asset for their investment. Due to its distinctive qualities, they prefer to believe in Bitcoin rather than in cash.