US-based major business intelligence company MicroStrategy said it had purchased BTC 21,454 at an aggregate price of USD 250m, inclusive of fees and expenses.
“Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders,” Michael J. Saylor, CEO of MicroStrategy, was quoted as saying in the announcement.
As claimed by Saylor, this investment shows their belief that BTC is a “dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.”
He further added that their decisiveness to invest in BTC was prompted in part by macro factors such as the economic and public health crisis hastened by COVID-19, modern government financial stimulus measures, particularly with numerical easing, adopted worldwide, and global political and economic possibility.
Moreover, the company said it believes that BTC would not only be as a hedge against inflation, “but also the prospect of earning a higher return than other investments.”
“So there you go. We now have a publicly traded corporation that has decided to use Bitcoin as the reserve asset on their balance sheet. They aren’t in the Bitcoin business. They have no blockchain-based products. This isn’t a cash grab by adding “blockchain” or “crypto” to their name. This is a simple analysis done by a team that is worried about protecting their shareholder value in uncertain and chaotic times in the macroeconomy,” Morgan Creek Digital co-founder Anthony Pompliano wrote in his newsletter today.
At pixel time (14:31 UTC), BTC trades at USD 11,602 and is down by 3% in a day, trimming its weekly gains to 4%. The price is also up by 25% in a month and 2% in a year.