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.
READ: BTC bounty: 69,000 Bitcoins worth $700 million waiting for you
“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.
To acquire 16,796 BTC (disclosed 9/14/20), we traded continuously 74 hours, executing 88,617 trades ~0.19 BTC each 3 seconds. ~$39,414 in BTC per minute, but at all times we were ready to purchase $30-50 million in a few seconds if we got lucky with a 1-2% downward spike.
— Michael Saylor⚡️ (@saylor) September 18, 2020
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.”
READ: Nigerian Treasury Bills plunge to 3.39% per annum
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.
READ: XRP plunges more than 10%, biggest daily percentage drop since March 12
“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.
READ: Bitcoin could potentially become superior to cash
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.
