There are many narratives associated with the digital asset Bitcoin: digital gold, uncorrelated asset, asset as inflation protection and some more. Especially in the wake of the Corona crisis and the monetary policy measures of central banks and governments worldwide, these have gained in importance like never before.
While many BTC fans and Crypto enthusiasts have been communicating the advantages of Bitcoin for years and many are investing diligently, the public image of BTC seems to be changing more and more. This is shown, for example, by the figures for the last two quarters of Grayscale, which signal an increased interest of institutional investors. But BTC does not only seem to offer added value for hedge funds and the like. Companies also seem to have discovered Bitcoin for their corporate portfolios.
Microstrategy invests USD 250,000,000 in Bitcoin
This is evidenced by „MicroStrategy’s“ recent approach to Bitcoin. The company is the largest listed business intelligence company, has 2,600 employees according to Wikipedia and is represented in a total of 128 cities in 89 countries.
In a press release issued yesterday, the company stated that it has acquired Bitcoin for a total value of USD 250,000,000. The purchase of 21,454 BTC is aimed at maximizing long-term value for its shareholders. Most interestingly, MicroStrategy has taken an active cash approach to the purchase.
This investment reflects our belief that Bitcoin, as the world’s most widely used cryptocurrencies, is a reliable store of value and an attractive investment with greater long-term capital appreciation potential than cash.
According to the listed company, Bitcoin is of great relevance not only to individuals but also to companies and their so-called corporate portfolios.
Since its introduction over a decade ago, Bitcoin has become a significant addition to the global financial system, with features that are useful to both individuals and institutions. MicroStrategy has recognized Bitcoin as a legitimate investment value that can be superior to cash […].
Why did the company make this decision?
One of the main reasons why MicroStrategy has decided to invest in Bitcoin at this time is due to the monetary policies of central banks around the world in the wake of the Corona crisis. Many analysts see an increased likelihood that the expansion of the money supply will lead to higher inflation.
Our decision to invest in Bitcoin at this time was partly driven by the interaction of macro factors that influence the economic and corporate landscape […]. These macro factors include […] the economic and health crises triggered by COVID-19, the unprecedented government financial stimulus measures, including the quantitative easing adopted globally, and global political and economic uncertainty. We believe that these and other factors together can have a significant devaluation effect on the long-term real value of fiat currencies and many other conventional investments […].
It remains to be seen whether the developments MircoStrategy feared and the forecast inflation will actually occur. Nevertheless, it is a very bullish sign for Bitcoin that companies are apparently starting to buy up the digital taler, increasing the pressure to buy as another group of players in the market.
A hymn of praise to Bitcoin
The following words will sound in the ears of many Bitcoin fans like the heavenly song of the financial angels. Chief Executive Michael J. Saylor, for example, says that Bitcoin is the most robust form of money ever created:
We believe Bitcoin’s global acceptance, brand awareness, ecosystem vitality, network dominance, architectural resilience, technical value and community ethos are compelling proof of its superiority as an asset class for those seeking long-term value retention. Bitcoin is digital gold – harder, stronger, faster and smarter than any money that has preceded it. We expect its value to grow as technology advances, acceptance increases and the network effect that has fueled the rise of so many killer categories in the modern era.