U.S public listed company allocates $425 million into Bitcoin

MicroStrategy CEO, Michael Saylor, the leader of a U.S public traded company, has convinced the board to allocate nearly all of the company’s $425 million cash position to bitcoin.

MicroStrategy has made a number of headlines in recent times for its initial $250 million Bitcoin (BTC) investment. The company later poured a subsequent $175 million into the asset—a lengthy endeavor totaling almost 100 hours of work.

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“To acquire 16,796 BTC (disclosed 9/14/20), we traded continuously 74 hours, executing 88,617 trades ~0.19 BTC every 3 seconds,” Michael Saylor said in a tweet yesterday.

The MicroStrategy CEO spoke on how the treasury asset would be kept. “If Bitcoin is treated as a treasury reserve asset, based on our model, 99.98% of all transactions will be off-chain, and assets-at-risk will be in cold storage 99.92% of the time.” 

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If #Bitcoin is treated as a treasury reserve asset, based on our model, 99.98% of all transactions will be off-chain, and assets-at-risk will be in cold storage 99.92% of the time.

— Michael Saylor⚡️ (@saylor) September 17, 2020

Why Microstrategy is buying Bitcoin

Recall that about a month ago, Nairametrics broke the news on MicroStrategy adopting Bitcoin as a treasury reserve asset to hedge against fiat inflation. This is a big deal and it’s good to see BTCs being used as intended—a hard money/savings instrument.

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“Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders,” said Michael Saylor.

“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 added.

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There’s never been a better time to buy Bitcoins than now that the government is involved in stimulus packages that are intended to pump money into the system.