Nasdaq-listed American enterprise software firm Microstrategy said it purchased over $250 million in Bitcoin this year, an announcement that pumped its stock prices up by 10 percent.
As per a release Tuesday, Microstrategy said Bitcoin is now a cornerstone of its financial strategy in the coming years, especially as the US battles with the ill-effects of the coronavirus pandemic and the risks of over-inflation.
The firm said, "Distinctive properties" of Bitcoin led it to believe investing in the cryptocurrency would provide not only a reasonable hedge against inflation but also the prospect of earning a higher return than other investments.
In all, the firm picked up over 21,454 Bitcoin at an aggregate purchase price of $250 million, inclusive of fees and expenses.
Michael J. Saylor, the CEO of MicroStrategy, noted the firm's investment in Bitcoin as part of their new capital allocation strategy, which maximizes shareholder value.
The decision to purchase Bitcoin wasn't overnight, he noted.
He added Bitcoin has emerged as a significant addition to the global financial system, with characteristics that are useful to both individuals and institutions.
Saylor articulated the opinion called the global acceptance, brand recognition, ecosystem vitality, network dominance, architectural resilience, technical utility, and community ethos of Bitcoin as some factors behind its "Superiority as an asset class for those seeking a long-term store of value."
He noted Bitcoin was "Digital gold," and "Harder, stronger, faster, and smarter" than any money that has preceded it.
Twitter commentators said the value of that was over $250 million, enough to cover the firm's Bitcoin investment.
American software firm buys up $250 million in Bitcoin, stock jumps 10%
gepubliceerd op Aug 12, 2020
by Cryptoslate | gepubliceerd op Coinage
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