The business intelligence giant MicroStrategy is making rounds on the internet for their bitcoin buying strategy, which has surprised everyone around the crypto society. The company acquired 21,454 Bitcoin in the last month and described it as a ‘’Capital Allocation Strategy.’’ The business intelligence behemoth has poured $175 million more into the asset, and the entire buying process took around 100 hours to complete.
Michael Saylor, the CEO of MicroStrategy, took to twitter and said they traded 74 hours and executed 88,617 trades to acquire 16,796 bitcoins. MicroStrategy is one of the first mainstream business intelligence companies to enter into the crypto space. They took a leap of faith into BTC, buying 21,454 bitcoins, worth $250 million at a time. They termed their Bitcoin investment a reserve asset for the entity.
Investing in cryptocurrency in such a huge amount is unheard of, as cryptocurrencies are usually perceived as labile and volatile, and this perception keeps companies from investing heavily in cryptocurrencies. The MicroStrategy’s BTC buying has raised eyebrows. Some are calling it good for the crypto market, while others are linking it to something big happening in the future. However, the statements given by the CEO of MicroStrategy over the last few months indicate that they have sensed the future of cryptocurrencies and digital assets. MicroStrategy’s Bitcoin adoption may go a long way toward persuading other big players to invest in digital currencies, ultimately strengthening the crypto industry. If other companies and organizations follow MicroStrategy’s strategy, the day isn’t far off when the digital currencies will permanently replace the fiat currencies.
The CEO Michael J. Saylor said that their Bitcoin investment was part of their capital allocation strategy, which aimed at maximizing long-term value for their shareholders. They think that Bitcoin is the widely-accepted cryptocurrency and a reliable store of value and an appealing investment that has more long term appreciation potential. Since its inception in 2009, Bitcoin has come a long way, emerging as a vital addition to the world financial system. It has characteristics that are crucial to both institutions and individuals. Mr. Saylor said that they had recognized Bitcoin as a valid investment asset that could be superior to fiat currency, and therefore they had made Bitcoin (BTC) the principle holding in their treasury reserve strategy. Mr. Saylor further explained that they opted for BItcoin because of the public health and economic crises caused by the novel coronavirus, and the global economic and political uncertainty.
MicroStrategy’ BTC buying strategy is apparently risky, as it can go both ways, either leading to big losses or paying off handsomely, depending on the Bitcoin’s value in the future. MicroStrategy is one of the first publicly-traded firms to bet heavily on Bitcoin and may persuade other firms to do the same. If MicroStrategy earns good ROI on its bet, it might spur more firms to make similar cryptocurrency bets, driving more adoption for BTC and other altcoins. Conversely, a sour bet will discourage more businesses from making such bets, and as a result, it will lead to a reduced mainstream crypto interest.
MicroStrategy is a publicly-traded independent business intelligence company that is widely recognized for its enterprise analytics platform. They are a leader in Business Intelligence (BI) space and have decades of experience in anticipating technology trends. HyperIntelligence® is something they have recently invented, which offers zero-click insights that can be used in conjunction with applications to make them faster, stronger, and smarter.
They aim to support Intelligence Everywhere™. They provide all-inclusive analytics on a comprehensive, open enterprise platform that is being used by the world’s established brands and companies in Fortune Global 500. The platform is designed especially for on-premises and cloud deployments and offer Hyperintelligence, an advanced technology that joins actionable enterprise data with current business applications to help people make faster, smarter decisions. MicroStrategy, Intelligence Everywhere, HyperIntelligence are trademarks of the company incorporated in the US and other countries.
The MicroStrategy’s BTC buying shows that they consider Bitcoin a better choice than fiat currencies and other safe heaven-assets such as gold. According to many experts around the crypto society, other big-money players will also consider following the MicroStrategy, which will ultimately go in favor of Bitcoin and the crypto industry.
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