The world’s largest publicly traded business intelligence company MicroStrategy (Nasdaq: MSTR) has formally adopted Bitcoin (BTC) as its primary reserve asset.
In a press release issued on Aug. 11, MicroStrategy confirmed it had purchased 21,454 BTC for $250 million.
MicroStrategy: Move “reflects our belief in Bitcoin”
Michael J. Saylor, CEO of MicroStrategy, commented in the press release:
“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.”
The move marks a watershed moment for institutional uptake of Bitcoin, and did not go unnoticed by commentators.
“I suggested 6 months ago, we are now starting to see businesses owning Bitcoin as a marketable security on their balance sheet,” well-known commentator Preston Pysh responded on Twitter.
“MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset. Just. Getting. Started.”
1-month MSTR stock price performance. Source: Nasdaq
Originally announced on July 28, the move has nonetheless had a noticeable impact on MicroStrategy’s stock price, which has gained 5.7% since. At the same time, the price of Bitcoin has gained over 10%.
Barry Silbert, CEO of crypto investment giant Grayscale, also praised the company’s decision.
“MicroStrategy, a $1.2 billion company, just turned itself into a publicly-traded bitcoin play. Smart.”