MicroStrategy, a billion-dollar software firm, has made a massive Bitcoin purchase last August. But it might be the last, as indicated in new SEC filing suggests.
The billion-dollar business intelligence software firm made waves last month when it announced to shareholders that it might invest up to $250 million in Bitcoin over the following 12 months and the days later went ahead and did it anyway.
The purchase amounting to 21,454 BTC ($229 million as of writing) was a signal to other public companies that Bitcoin can be used as a thoughtful stand-in asset. While now, the company suggests that it can increase their Bitcoin holdings in the future.
On Friday, after filing with the US Securities and Exchange Commission Friday, the company has noted that its board of directors has updated the company’s treasury reserve policy. The new system notes that aside from cash, cash equivalents, and short-term investments, Bitcoin will now aid as the company’s primary standby asset.
“As a result of this new policy, the company’s holdings of Bitcoin may increase beyond the $250 million investment that the company disclosed on August 11, 2020,” the statement reads.
MicroStrategy isn’t making any promises, but after dropping a quarter of a million dollars into Bitcoin just a month ago, it is clear that the firm is not second-guessing their decision – even when the recent plunging movement for the price of Bitcoin and other top crypto assets.
Initially, MicroStrategy leadership said that it was considering Bitcoin and other crypto assets due to what they saw as a weakening US dollar, given low Western interest rates and the impact of the United States’ stimulus-response to the COVID-19 pandemic. Days later, the purchase was announced.
“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,” MicroStrategy CEO Michael Saylor said in August.
“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.”
Remarkably, Saylor’s announcement is a turnaround. In 2013, Saylor predicted the death of Bitcoin, he tweeted;
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