Bitcoin (BTC) in cash
MicroStrategy announced on August 11 that it had acquired 21,454 Bitcoin (BTC) for a total amount of $ 250 million.
MicroStrategy specializes in software publishing and has a market capitalization of $ 1.5 billion. Among the French clients of MicroStrategy are: Carrefour, TF1, Fnac and Galeries Lafayette.
In a filing with the Securities and Exchange Commission (SEC), the company decided via its board of directors to integrate Bitcoin as main store of value. We can read in the statement to the SEC:
“As a result of this decision, the company’s Bitcoin holdings may increase beyond the $ 250 million investment the company made on August 11, 2020.”
Originally, MicroStrategy management said they were considering buying BTC and other cryptocurrencies due to the aweakening dollar.
The very low interest rates and the situation in the United States in the face of the coronavirus pandemic have convinced MicroStrategy officials to buy Bitcoin to hedge against inflation. Michael Saylor, CEO of MicroStrategy, said in August:
“This investment reflects our belief that Bitcoin, as the world’s most adopted cryptocurrency, is a reliable store of value and an attractive asset with greater potential for long-term appreciation than holding cash. “
👉 To find out more, discover our Bitcoin file
Never too late to change your mind
Interestingly, the opinion of the CEO of MicroStrategy has changed over the years. In 2013, he predicted the death of Bitcoin on Twitter: “The days of Bitcoin are numbered. It seems it’s only a matter of time before it suffers the same fate as online gambling. “
This is reminiscent of the volt-face of JP Morgan CEO Jamie Dimon who called Bitcoin a scam before retracting a few years later.
👉 To read on the same subject: JPMorgan recognizes the resilience of Bitcoin and compares it to stocks
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About the Author : Florent David
I started to discover the basics of blockchain and Bitcoin technology with Satoshi Nakamoto’s post: A Peer-to-Peer Electronic Cash System. The disruptive and controversial aspect of the subject quickly fascinated me!
All articles by Florent David.