The Nasdaq-listed analytics software provider MicroStrategy bought 21,454 BTC (~$250 million at the time of the deal), becoming the first public company to allocate part of its capital to bitcoin.
“Investing in bitcoin is part of our new capital-allocation strategy designed to maximise long-term value for our investors,” said CEO Michael Saylor.
He added that the company views bitcoin as a more reliable alternative to the US dollar, which is subject to devaluation.
“This investment reflects our belief that bitcoin, as the world’s most popular cryptocurrency, is a reliable store of value and an attractive investment asset. Its long-term potential is higher than that of fiat money.”
The statement did not specify where the company purchased the bitcoins or how it intends to store them.
MicroStrategy’s market capitalisation is currently over $1.3 billion. In the wake of the bitcoin purchase announcement, the company’s shares jumped as much as 14.6%, according to Yahoo Finance.
Plans by the firm to invest part of its capital in cryptocurrency and other ‘alternative assets’ became known earlier this month. Saylor attributed the move to inflation risks surrounding the US dollar.
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