Microstrategy Inc. a billion-dollar company listed on the Nasdaq has apparently bought 16,796 more Bitcoins. The company went on to purchase a total of 38,250 bitcoins at a total price of $425 million. CEO Michael Saylor tweeted to inform its users of the latest development. He wrote:
“On September 14, 2020, Microstrategy completed its acquisition of 16,796 additional bitcoins at an aggregate purchase price of $175 million. To date, we have purchased a total of 38,250 bitcoins at an aggregate purchase price of $425 million, inclusive of fees and expenses.”
The move was followed by an update by Microstrategy to the SEC about the new bitcoin investment plan. In a filing dated September 11’th, the Nasdaq-listed organization also revealed its latest plans. It informed that its board of directors has indeed adopted a new Treasury Reserve Policy which would go a long way in updating the company’s treasury management and capital allocation strategies.
They enlisted new policy enumerates that the company’s treasury will have two types of assets. The first asset type class will comprise cash, equivalents of cash, and short-term investments. This will be held by the company and will surpass the working capital needs.
The second type of asset class will consist of Bitcoins held by the company. Bitcoin will serve as the primary treasury reserve asset on a continuous basis and will be subject to market conditions. It also will serve the anticipated needs of the business for cash assets and future repurchase activities. Microstrategy also extended: “As a result of this new policy, the company’s holdings of bitcoin may increase beyond the $250 million investment.”
CEO of Microstrategy Incorporation, Michael Saylor has not always supported Bitcoin as a great investment option. In 2013, one of his tweets said that Bitcoin days are numbered and that it was just a matter of time, it suffered the same fate as that of online gambling. Microstrategy is by far the biggest independent publicly traded business intelligence organization, and what caused Michael Saylor to change his opinion on Bitcoin only he can tell. The company is worth more than $1.2 billion and has shown interest in accumulating cryptos specifically Bitcoin. Ever since it had set its eyes on Bitcoin it managed to purchase about 21,454 Bitcoins.
Microstrategy despite the CEO’s earlier claims was a collective decision of the Board of Directors and it ventured into bitcoin buying because the firm believes that cryptocurrency investment is promising and Bitcoin is a reliable store of value as compared to other fiat assets. Now that the performance of fiat currencies is way out of the mark, the company decided to pick out an alternative that would not submit to the whims and fancies of inflation. They also wanted to look for an asset class that would benefit them in the long term.
With this recent purchase of Bitcoin Microstrategy holds a total of 38,250 Bitcoins which is worth about $425 million and 0.18% of the total bitcoin supply.