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Monday, September 21, 2020

U.S. PUBLIC COMPANY PLACES $425 MILLION IN ASSETS INTO BITCOIN

 

 

Us public trading company MicroStrategy is rumoured to have put almost all of the company's cash into Bitcoin for $425 million.


MicroStrategy recently became the main news story of a new investment of $250 million into Bitcoin, then added $175 million to Bitcoin from the previous bitcoin investment profit in a long duration of nearly 100 working hours.


"To obtain 16,706 BTC (14/9), we continue to trade continuously for 74 hours, trading 88,617 times or 0.19 BTC every 3 seconds," said Michael Taylor, CEO of MicroStrategy, in a tweet.

 


Based on the results of this trade, MicroStrategy CEO Michael Taylor revealed that:


"If Bitcoin were required as a treasury reserve asset under our model, 99.98% of all transactions would be off-chain, and risky assets would be in frozen asset cold storage 99.92 at all times."

 

 

Why MicroStrategy Is Buying Bitcoin


MicroStrategy companies place their funds in Bitcoin to protect their assets against fiat currency inflation.


"Our investment in Bitcoin is part of our new capital allocation, which seeks to maximise long-term value for our shareholders," michael saylor said.


"This Bitcoin investment reflects our belief that Bitcoin, as the most adopted crypto currency in the world, is a reliable store of value and attractive investment assets with the potential for increased asset value due to higher long-term market factors than storing assets in cash."


Now is the best time to buy Bitcoin, due to a push from the U.S. government to provide a stimulus package to pump liquidity into the financial system.


During the pandemic, bitcoin's value growth outperformed various other types of investment instruments such as gold, the US dollar, and deposits. Thus, market factors resulting from the Fed's policy of keeping the benchmark interest rate at nearly 0%, keep the US dollar on a downward trend. Meanwhile, investors will be looking for other investment instruments that are more promising high return rates, one of which is Bitcoin which has increased by more than 60% since January – August 2020. Bitcoin's rise is still above gold, which only recorded a rise of about 30%.


The US public company, MicroStrategy, is a bit of a fundamental factor affecting the price of Bitcoin in the future, with a growing number of institutional investors putting their funds in Bitcoin.

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