The race to accumulate Bitcoin as a reserve asset on company balance sheets has begun
In what may end up being the biggest news of the past week that no one is talking about...
MicroStrategy, the The world’s largest publicly-traded business intelligence company has swapped their fiat for bitcoin as its treasury reserve asset.
The CEO of the company said they bought 21,454 bitcoin which cost them about $250 million.
The press release can be seen here:
Why did they do it?
According to the CEO their reasoning was pretty simply really.
Basically, according to the, bitcoin is digital gold, saying:
"Bitcoin is digital gold – harder, stronger, faster, and smarter than any money that has preceded it.”
And with fears surrounding the dollar they think that it will increase in value over time due to several key factors:
- advances in technology
- expanding adoption
- network effect
“We expect its value to accrete with advances in technology, expanding adoption, and the network effect that has fueled the rise of so many category killers in the modern era.”
"Eventually every company will do the same"
Here's the really exciting part in all of this...
This is likely the beginning of a digital gold rush of sorts.
MicroStrategy is very likely the first of many companies to do this and I am not the only one that shares that same opinion...
(Source:
)https://twitter.com/JasonYanowitz/status/1293152132451926021
- JasonYanowitz
And here we thought the next big driver for bitcoin was going to be institutional investment.
But what if it's fortune 500 companies adding it to their balance sheet as a hedge of their own against expected inflation?!
It looks like we are already starting to see that happen.
There is a lot of money sitting on corporate balance sheets btw, can you imagine what the price of bitcoin might do if they all start taking allocations around the same time?
I have a guess...
Stay informed my friends.
-Doc