The board chose MicroStrategy to make Bitcoin (BTC) the company’s primary reserve capital. The US Securities and Exchange Commission reveals that this could lead to future expansion of the company’s cryptocurrency expenses beyond the initial purchase of 21,454 BTC, which is equivalent to $ 250 million:

Bitcoin acts as a primary reserve capital for the Treasury continuously, depending on market conditions and the company’s expected cash needs, including potential future repurchase activities. As a result of this new policy, the company’s Bitcoin assets may exceed the $ 250 million investment reported by the company on August 11, 2020. ”

In a press release that followed the company’s first acquisition of Bitcoin, MicroStrategy CEO Michael J. Saylor said:

“This investment reflects our belief that Bitcoin, as the most widely used cryptocurrency in the world, is a reliable store of value and an attractive investment asset with the potential for long-term valuation, not cash.”
The move has already generated a large number of copies, with smaller companies in all formats publishing similar ads. In particular, the MicroStrategy Block.one domain sold in 2019 for $ 30 million. Perhaps this gave the company’s management an estimate of the value of the cryptocurrency. Some of the world’s largest institutional investors own shares in the company. This can serve as an illustration of the adoption of Bitcoin on Wall Street in recent years.

Since the purchase of the original bitcoin a month ago, MicroStrategy has surpassed the Nasdaq Composite.

Source: CoinTelegraph

LEAVE A REPLY