MicroStrategy has arguably become the first business intelligence company to hold a significant amount of Bitcoin (BTC) as its primary treasury reserve assets. Earlier this month, the company disclosed it was planning to invest a substantial amount in alternative assets, mentioning the likes of Gold, Bitcoin, etc. 

MicroStrategy Holds $250 Million Worth of Bitcoin

A press release on Tuesday confirmed that the publicly-traded company invested about $250 million in Bitcoin, which equals 21,454 BTCs. Noteworthily, MicroStrategy’s investments in Bitcoin were made as part of the two-pronged capital allocation strategy which the company recently adopted.

Another interesting part of the development today is how the company preferred to invest in the cryptocurrency, among other long-standing assets. For one thing, the CEO of MicroStrategy Incorporated, Michael J. Saylor, said:

-Advertisement-

“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.”

Bitcoin, Not Gold

Financial and health crisis caused by the coronavirus virus is part of the reason that drove the company’s decision to invest in the cryptocurrency. Saylor added:

“We believe that, together, these and other factors may well have a significant depreciating effect on the long-term real value of fiat currencies and many other conventional asset types, including many of the assets traditionally held as part of corporate treasury operations.”

Saylor’s comment is one that places Bitcoin as a better asset to hedge against devaluing currencies. He opined that the cryptocurrency is a legitimate investment asset to hedge against the uncertainty economy. Also, he acknowledged how Bitcoin has grown to become a huge addition to the global economy.