MicroStrategy, a publicly traded business intelligence bought 21,454 bitcoins worth $250M on Tuesday. The total sum was the firm’s planned hedge funds against inflation but it was invested into the digital currency. While stating reasons for bitcoin purchase and the stocks buyback in a Press Statement, the firm (MicroStrategy), worth over $1.2 billion dollars said bitcoin was a safe haven against inflation – “reasonable hedge against inflation”.
The chief Executive of the firm, Michael J. Saylor went on by saying bitcoin is a better alternative of storing value for long-term and investment other than cash –
“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”.
He mentioned certain challenges that faced the Fiat currencies like the COVID-19 global pandemic as well as uncertainty in terms of economics and politics, but gave credit to certain technical areas that gave the cryptocurrency strength. Saylor said bitcoin has a convincing superiority as an asset for individuals looking for long-term store of value because of its global acceptance, network dominance, ecosystem vitality among others.
It was said that Saylor promised to shareholders of his company (founded 1989) late in July that the firm was going to buy back $250 million in stock, and another $250 million would be added to invest in gold and bitcoin over the span of the next twelve months.
But with the recent purchase of the $250 million bitcoin shows that half the proposed $500 million dollars have been invested in buying bitcoin. MicroStrategy claims that the major holding in its funds reserve is in bitcoin according to the CEO.