Bitcoin has been seeing an amazing year despite the world crisis that has been triggered by this pandemic.
After the king coin fell in price back in March and it was trading below $4,000, as you probably know by now, these days the most important digital asset out there has been re-testing $12k. This is an immense recovery since the March fall.
At the moment of writing this article, BTC is trading in the red and the coin is priced at $11,311.33.
It’s been recently revealed that MicroStrategy, the largest publicly-traded business intelligence company, says it just used $250 million of its balance sheet capital to buy Bitcoin.
Maximizing long-term value for shareholders
In their press release, the company said that the purchase of 21,454 BTC is designed to maximize long-term value for its shareholders.
“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,” according to the firm’s notes.
They continued and explained that “Since its inception over a decade ago, Bitcoin has emerged as a significant addition to the global financial system, with characteristics that are useful to both individuals and institutions. MicroStrategy has recognized Bitcoin as a legitimate investment asset that can be superior to cash and accordingly has made Bitcoin the principal holding in its treasury reserve strategy.”
The firm also said that the concern about the future of government-backed currencies played a significant role in its decision.
“Our decision to invest in Bitcoin at this time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program ― risks that should be addressed proactively,” they said as quoted by the online publication the Daily Hodl.
It’s also worth noting that Chief executive Michael J. Saylor said that the company believes Bitcoin is the most robust form of money ever created – he is expecting that its value will grow over time.
We recommend that you check out the original press release.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Source: Read Full Article