MicroStrategy believes Bitcoin is a “dependable store of value.”
MicroStrategy, the world’s renowned business intelligence firm purchases a major portion of BTC intending to make the rising digital money as its primary treasury reserve asset.
On Aug. 11, in a press release via Businesswire- A Berkshire Hathway Company, the largest and independent publicly-traded business intelligence firm (Nasdaq: MSTR) announced the adoption of the world’s major crypto asset as a long-term store of value.
Reportedly, MicroStrategy has purchased 21,454 bitcoins (first prong) of nearly $250 million as a part of its one of the two-pronged capital allocation strategies which the firm earlier announced in the second quarter 2020 financial result on July 28, 2020.
According to Michael J. Saylor, CEO, MicroStrategy, the management has a strong belief in Bitcoin and the motive of this investment is to provide maximum and long-term value to the firm’s shareholders.
“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.”
Further, Saylor while mentioning company’s thought over financial and economic risks which is hovering globally said that “macro factors affecting the economic and business landscape that we believe in creating long-term risks for our corporate treasury program” and the decision to adopt Bitcoin is in unison with the rising demand of the asset while negating the risk factors hanging on the company’s corporate treasury program.
Institutional adoption is making Bitcoin stronger than before. The bullish sentiments of major institutions and the present trend are likely to perform as a catalyst to increase its mainstream adoption which can speculatively make BTC surge further. At press time, Bitcoin is hovering at $11,607.09 USD with a total circulating supply of 18,457,650 and the market capitalization is $214,239,560,776 USD.