Business Intelligence publicly traded firm MicroStrategy buys 21,454 bitcoin this Tuesday, putting effectively all of its $259 million of its planned inflation-hedging amount into the digital currency. Opening its cryptocurrency buy with an equivalent stock buyback this week, on Tuesday Securities & Exchange Commission filing, a Nasdaq-listed software firm, MicroStrategy, of $1.2 billion, said the crypto deliver optimal enclosure against its prepared inflation, in a press.
CEO Michael J. Saylor said in an interview, “This investment reflects the belief that cryptocurrency, bitcoin, as the world’s largely adopted crypto, is an efficient and dependable store of value and an appealing investment asset with long-term recognition potential than having cash”. Besides this, Michael J. Saylor cited several forces that are working to destroy fiat currencies, Coronavirus pandemic, political and economical uncertainties, and global quantitative easing measures. He also stated some of the qualitative and technical aspects that help the bitcoin blockchain to become powerful in the coming years.
Further, the CEO Michael went on to say, “We find brand recognition, global acceptance, network dominance, technical utility, community ethos, and architectural resilience of Bitcoin to be compelling evidence of its superiority as an asset for people exploring long-term store of value”.
The capital allocation speedily fulfills CEO, Michael J. Saylor’s July assurance to shareholders that MicroStrategy will buyback $250 million in stock and finance further $250 million in bitcoin and gold in the next 12 months. The reliance was supposed that these and some other “additional investments” will safeguard MicroStrategy’s heavy dollar balance sheet. Also, Saylor further said, “MicroStrategy, therefore, has made crypto, Bitcoin the main principal holding in its treasure reserve strategy”. Hence, it becomes crystal clear that nearly half of the total $500 million bet turns majorly on bitcoin
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