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MicroStrategy confirms it has made Bitcoin its primary treasury reserve asset as institutional uptake takes a dramatic bullish step forward.
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.
He tweeted:
“MicroStrategy, a $1.2 billion company, just turned itself into a publicly-traded bitcoin play. Smart.”
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.