MicroStrategy Bets Another $175 Million on Bitcoin

MicroStrategy, the Nasdaq-listed analytics software provider that previously invested $250 million in Bitcoin, approved a new reserve policy. The document confirms the company’s readiness to increase its investments in the leading cryptocurrency.

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UPDATE. MicroStrategy CEO Michael Saylor said that on September 14 the company purchased an additional 16,796 BTC for $175 million. He valued MicroStrategy’s total investment in the leading cryptocurrency at $425 million, including fees and expenses.

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On September 14, 2020, MicroStrategy completed its acquisition of 16,796 additional bitcoins at an aggregate purchase price of $175 million. To date, we have purchased a total of 38,250 bitcoins at an aggregate purchase price of $425 million, inclusive of fees and expenses.

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— Michael Saylor (@michael_saylor) September 15, 2020

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MicroStrategy’s reserves, listed on Nasdaq, will consist of fiat currency, its equivalents and short-term investments, as well as Bitcoin. The board has decided to use cryptocurrency as the primary reserve asset on a permanent basis.

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“Under the new policy, Bitcoin holdings could exceed the $250 million in investments the company reported on August 11, 2020,” the report said.

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As reported, CEO Michael Saylor called the investments in Bitcoin a reliable hedge against a devaluing U.S. dollar. MicroStrategy became the first publicly traded company to allocate capital to a cryptocurrency.

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Earlier Canadian firm Snappa shifted half of its fiat reserves into Bitcoin due to high inflation risks. Going forward, company leadership plans to increase investments in BTC.

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