MicroStrategy is a Nasdaq-listed software firm and the world’s largest independent business intelligence company with a net worth over $1.2 billion. The company has announced that it has added 21,454 bitcoins to its treasury on 11th August 2020.
The company shared a press release where it mentioned Bitcoin would provide ‘a reasonable hedge against inflation’. The CEO of the firm, Michael J. Saylor said that their investment in Bitcoin is proof of their belief in the cryptocurrency as a dependable, reliable, and attractive long-term investment option in today’s scenario.
He went on to mention the various causes around the world- the pandemic, political and economic uncertainties, as the reasons that are weakening fiat currency. In such conditions, the technical strength of the blockchain is giving Bitcoin a major edge. He also said that Bitcoin offers advantages to both individual investors and institutions.
MicroStrategy announced on 28th July while releasing the financial reports for Q2, saying it would invest $250 million each in two stages. The investments were to be made in stock, Bitcoin, and gold over the next 12 months. The President and CFO, Phong Le, said that their two-pronged strategy would benefit shareholders, employees, customers, and partners.
True to the word, the company went on buy 21K bitcoin in less than 15 days after the announcement. With a firm belief that Bitcoin would gain supremacy over fiat currency, the company has made BTC its primary holding in the treasury. This move also brought a significant change to the balance sheet, which was titled heavily tilted towards the dollar.
MicroStrategy is famous for anticipating the trends in technology due to its 30-year successful history in the industry. With concepts like Web Intelligence, Mobile Intelligence, Relational Analytics, and the latest Hyperintellignce®, the company has been a pioneer in the field. The company was founded in 1989 by Michael J. Saylor and Sanju Bansal. It has announced a profit of $34 million in 2019.
What This Means for the crypto-world
While MicroStrategy is clear about what their investment means to the company, it’s time to see how it impacts the crypto market.
It certainly doesn’t surprise us that crypto lovers are excited and celebrating. It’s hard for such a massive investment to go unnoticed in the market. Many crypto followers expressed delight over the decision.
Preston Pysh, a popular crypto commentator, tweeted about his suggestion made 6 months ago. He said the institutions have begun seeing Bitcoin as ‘marketing security’ and will be making investments in the crypto market. He emphasized that things have just started and more such investments would follow.
The CEO of Grayscale, Barry Silbert also tweeted supporting the decision of MicroStrategy. He said that the company made a smart move by adding Bitcoin to the balance sheet.
This move has proved to be advantageous to both the company and Bitcoin. While the shares of MicroStrategy climbed high by 5.7%, the price of Bitcoin saw a perfect 10% rise. Isn’t that a mutually beneficial move?
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