1.2 Billion NASDAQ Listed-Firm ‘MicroStrategy’ Purchases $250 Million in Bitcoin (BTC)
As Bitcoin sits comfortably above $11,000 another large corporation has openly and publicly entered the space. MicroStrategy, a Virginia-based business intelligence software organization, they have accumulated a whopping 21,454 bitcoins worth nearly $ 250 million. The business firm worth more than $1.2 billion, also listed on NASDAQ, indicated that the digital asset offered a “reasonable hedge against inflation” and that, it was a “capital allocation strategy“.
With the dollar economy substantially weakening in 2020 due to the apparent Pandemic and consistent quantitative easing measure, Michael J. Saylor, CEO of MicroStrategy, indicated that they were currently turning their heads towards digital assets. According to him, the company believed that such “alternative investments” allow MicroStrategy to protect that U.S dollar-dominated balance sheet. He added,
“We find the global 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 of value.”
Organizations with such credibility usually inject capital into bonds or stocks as part of a capital hedge strategy, so taking the route to Bitcoin only strengthens the legitimacy of the digital asset.