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MicroStrategy (NASDAQ:MSTR), a US-based publicly traded business intelligence software company, announced in a press release on Tuesday that it had purchased 21,454 Bitcoin for $250 million.

The company’s CEO, Michael J. Saylor, mentioned that the investment in Bitcoin is part of a new capital allocation strategy that seeks to maximise long-term value for shareholders.

Saylor said: “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 further stated that the company expects the value of Bitcoin to accelerate, in alignment with technological advances and expanding adoption.

Binance CEO, CZ, shared the news on Twitter, stating that stimulus money from Wall street is on its way to Bitcoin.

MicroStrategy said that their decision to invest in Bitcoin was influenced by various factors. These included, the economic and public health crisis precipitated by COVID-19, unprecedented government financial stimulus measures, and quantitative easing adopted around the world, along with global political and economic uncertainty. The company stated  that “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.”

Bradley Silbert, CEO of crypto investment company, Grayscale, commended the company’s decision to invest in Bitcoin.

Feature image by WorldSpectrum from Pixabay 

Andrew is a law student currently studying at UNISA, and Global Crypto's in-house reporter. Andrew discovered blockchain in his final year of school and since developed a keen interest in the subject. He appreciates a good cup of coffee. When he is not too busy with work or studies, he enjoys playing a good round of golf.