Worldâ€™s Biggest Business Intelligence Firm Buys 21K Bitcoin for $250M
MicroStrategy confirms it has made Bitcoin its primary treasury reserve asset as institutional uptake takes a dramatic bullish step forward.
The worldâ€™s largest publicly traded business intelligence company MicroStrategy (Nasdaq: MSTR) has formally adopted Bitcoin (BTC) as its primary reserve asset.
In a press release issued on Aug. 11, MicroStrategy confirmed it had purchased 21,454 BTC for $250 million.
MicroStrategy: Move â€œreflects our belief in Bitcoinâ€�
Michael J. Saylor, CEO of MicroStrategy, commented in the press release:
â€œThis investment reflects our belief that Bitcoin, as the worldâ€™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.â€�
The move marks a watershed moment for institutional uptake of Bitcoin, and did not go unnoticed by commentators.
â€œI suggested 6 months ago, we are now starting to see businesses owning Bitcoin as a marketable security on their balance sheet,â€� well-known commentator Preston Pysh responded on Twitter.Â Â
â€œMicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset.Â Just. Getting. Started.â€�
1-month MSTR stock price performance. Source: Nasdaq
Originally announced on July 28, the move has nonetheless had a noticeable impact on MicroStrategyâ€™s stock price, which has gained 5.7% since. At the same time, the price of Bitcoin has gained over 10%.
Barry Silbert, CEO of crypto investment giant Grayscale, also praised the companyâ€™s decision.
â€œMicroStrategy, a $1.2 billion company, just turned itself into a publicly-traded bitcoin play. Smart.â€�
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