It is no longer a secret that Bitcoin has arrived on Wall Street. The fact that Bitcoin is now also finding its way into public companies is definitely news. And that’s exactly what happened on August 11, 2020! The world’s largest business intelligence company MicroStrategy (Nasdaq: MSTR) invested USD 250 million in the world’s largest cryptocurrency. That makes a whopping 21,454 BTC, so a decent amount to comfortably hobble.
More than 21,000 BTC as an inflation protection
When a stock rises more than 10%, there are usually good reasons for it. In the case of MicroStrategy, these reasons lie in the investment plans or recent investments. Because at the end of June 2020, the company had around $ 500 million in funds and short-term investments. The plan was to distribute around half of that to shareholders and invest the other half in alternative assets. According to an official press release, the alternative asset is now called Bitcoin and the investment sum of USD 250 million brought the company more than 21,000 BTC.
“This investment reflects our conviction that Bitcoin, in addition to the world’s best-adopted cryptocurrency, is also a reliable store of value and an attractive asset for investments with more long-term potential than money,” said MicroStrategy CEO Michael J. Saylor.