bitcoin treasury reserve

NASDAQ-listed MicroStrategy purchased $425m in Bitcoin last Fall, making the cryptocurrency the principal holding in its treasury reserve. According to the data, 13 entities have amassed close to 600,000 BTC — about 2.85% of all Bitcoins and worth approximately $6.9 billion. The First Domino: The Saylor Effect. We find the global acceptance, brand recognition, ecosystem vitality, network dominance, architectural resilience, technical utility, and community ethos of Bitcoin to be persuasive evidence of its superiority as an asset class for those seeking a long-term store of value. MicroStrategy, HyperIntelligence, and Intelligence Everywhere are either trademarks or registered trademarks of MicroStrategy Incorporated in the United States and certain other countries. On August 11, 2020, Michael Saylor, CEO of MicroStrategy, fired a shot heard across the Bitcoin industry and the legacy financial system. 1293. The purchase of Bitcoin cryptocurrency was made pursuant to the two-pronged capital allocation strategy previously announced by the company when it released its second quarter 2020 financial results on July 28, 2020. We expect its value to accrue with advances in technology, expanding adoption, and the network effect that has fueled the rise of so many category killers in the modern tech era.”. Forward-looking statements inherently involve risks and uncertainties that could cause actual results of MicroStrategy Incorporated and its subsidiaries (collectively, the “Company”) to differ materially from the forward-looking statements. To keep track and stay up to date of the growing list of companies that are adding Bitcoin to their balance sheet or start using it as their primary treasury reserve asset have a look at this great website: If you want to dig deeper down the Bitcoin rabbit hole and find more convincing reasons why you should hold at least a small portion of your money in Bitcoin you might also be interested in ‘The Case for Bitcoin‘, Your email address will not be published. MicroStrategy Incorporated Federal Reserve Chair Powell and Treasury Secretary have not warmed up to bitcoin. This week, MicroStrategy, a publicly-traded company, announced that it purchased 21,454 bitcoin at an aggregate purchase price of $250M as part of its treasury reserve strategy. “We are a Bitcoin company and we hold Bitcoin as a reserve asset because we believe Bitcoin is the best savings technology in the world.“ If your company is consid­ering acquiring some bitcoin, email us at Treasury@SwanBitcoin.com to see how … Share on Facebook. Disclosure. The company bought 4,812.66 BTC, at […] Brian Denyeau, Investor Relations MicroStrategy has recognized Bitcoin as a legitimate investment asset that can be superior to cash and accordingly has made Bitcoin the principal holding in its treasury reserve strategy. “I believe this foreshadows Tesla acquiring bitcoin for its treasury reserves. Microstrategy bought $425 million worth of Bitcoin, put it on their balance sheet and made it their primary treasury reserve asset. These dynamics have many corporations rethinking their offerings, operations, and systems, as well as their balance sheets and financial strategies. Please help me correct here Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. Those macro factors include, among other things, the economic and public health crisis precipitated by COVID-19, unprecedented government financial stimulus measures including quantitative easing adopted around the world, and global political and economic uncertainty. Download this playbook for a detailed look into the relevant policies for implementing and managing a bitcoin-based corporate treasury strategy. MicroStrategy believes the world is entering “The Virtual Wave” – a rapid dematerialization of products, services, and processes enabled by advances in technology and catalyzed by the COVID crisis. Trad. This year, we have witnessed a new trend of corporate treasuries allocating to bitcoin. Bitcoin Treasuries. She spoke … We will continue to do that over the coming years and maybe forever if we don’t have need for the fiat. We believe that, together, these and other factors may well have a significant depreciating effect on the long-term real value of fiat currencies and many other conventional asset types, including many of the assets traditionally held as part of corporate treasury operations.”, In considering various asset classes for potential investment, MicroStrategy observed distinctive properties of Bitcoin that led it to believe investing in the cryptocurrency would provide not only a reasonable hedge against inflation, but also the prospect of earning a higher return than other investments. A leader in the business intelligence space, MicroStrategy has a 30-year history of anticipating technology trends. MicroStrategy believes that buying $250 million in Bitcoin will provide it the opportunity to earn better returns and preserve the value of our capital over time compared to holding cash. The board of directors have now adopted a new Treasury Reserve Policy, effectively making Bitcoin the company’s primary reserve asset. Square followed with a $50 million allocation,…..and many are following. Insight - October 18, 2020. Nine companies in the S&P 500 are sitting on close to $600 billion in cash and short-term investments. Our decision to invest in Bitcoin at this time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program ― risks that should be addressed proactively. This strategy includes seeking to grow its revenue through its HyperIntelligence, Cloud Intelligence, and Embedded Intelligence offerings, a refreshed go-to-market focused on simplified products and pricing, and a cloud-first platform-as-a-service focus. MicroStrategy was one of the first companies in the enterprise business intelligence software sector. In criticisms of Federal Reserve actions, legendary investor Stanley Druckenmiller highlighted the case for bitcoin to replace the dollar. Since its inception over a decade ago, Bitcoin has emerged as a significant addition to the global financial system, with characteristics that are useful to both individuals and institutions. MicroStrategy Incorporated (MSTR) adopted bitcoin as its primary treasury reserve, buying 38,250 BTC for $425 million between August and September 2020 TYSONS CORNER, Va.--(BUSINESS WIRE)--MicroStrategy® Incorporated (Nasdaq: MSTR), the largest independent publicly-traded business intelligence company, today announced that it has purchased 21,454 bitcoins at an aggregate purchase price of $250 million, inclusive of fees and expenses. The next big treasure: Corporations buy up Bitcoin as a treasury reserve October is a time for surprises. MicroStrategy provides modern analytics on an open, comprehensive enterprise platform used by many of the world’s most admired brands in the Fortune Global 500. This press release includes statements that may constitute “forward-looking statements,” including estimates of future business prospects and financial results, expectations as to future returns on Bitcoin, the future value of Bitcoin, and the characteristics and utility of Bitcoin in future periods, and statements containing the words “believe,” “estimate,” “project,” “expect,” or similar expressions. It is not only giant, stock listed multinationals that are opting to hold their hard earned money in bitcoin. MicroStrategy’s goal of generating long-term operating income and free cash flow has also led it to adopt a new capital allocation strategy. Graphic design software company Snappa (7 employees) hold 50% of its treasury in Bitcoin with their reasoning defined as a valid question: “Would you rather save money in a currency whose supply is inflating each year? “Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders. We believe that bitcoin has the poten­tial to be a more ubiqui­tous currency in the future. The Bitcoin Treasury Reserve Strategy Lessons from Publicly-Owned Corporations www.bitcoinke.io www.bitcoinke.io | info@bitcoinke.io It is not every day, or every decade, that an entirely new asset class is born. Shortly after this announcement Square, the company founded and run by Jack Dorsey (the Twitter CEO) announced a similar step by allocating $50 million of their treasury towards Bitcoin. MicroStrategy has recognized Bitcoin as a legitimate investment asset that can be superior to cash and accordingly has made Bitcoin the principal holding in its treasury reserve strategy.”, Mr. Saylor continued, “MicroStrategy spent months deliberating to determine our capital allocation strategy. They converted their $425 million into a whopping 38,250 bitcoins with the intention of holding themfor 100 years. By. ir@microstrategy.com, Michael Bizovi, VP Corporate Communications The Company undertakes no obligation to update these forward-looking statements for revisions or changes after the date of this release. Factors that could contribute to such differences include: the historical price volatility of Bitcoin; uncertainty regarding the regulatory treatment of Bitcoin under various securities, commodities, and other regulatory regimes; the potential for significant impairment charges to the Company’s earnings in the event of a decrease in the price of Bitcoin and resulting volatility in the Company’s reported assets and earnings; the potential for security breaches or other cyberattacks that could result in a partial or total loss of the Company’s Bitcoin assets; and other risks detailed in the Company’s registration statements and periodic reports filed with the Securities and Exchange Commission. Nasdaq-listed Marathon Patent Group announced Monday that it has purchased around 4,812.66 Bitcoin (BTC) for about $150 million, as another US public company adopts Bitcoin as a treasury reserve asset. mbizovi@microstrategy.com. It was a pioneer in Relational Analytics, Web Intelligence, and Mobile Intelligence and has most recently invented HyperIntelligence® – zero click insights that can be embedded in applications to make them smarter, faster, and stronger. Created for free using WordPress and, Opera Browser with Crypto wallet integration, Dollar Cost Average Bitcoin & DCA your Crypto Investments. “Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders,” said Michael J. Saylor, CEO, MicroStrategy Incorporated. In 2012, Mr. Saylor wrote “The Mobile Wave,” addressing the impact mobile computing would have on business, consumer, and political behavior and the implications of the rise of Apple, Google, Facebook, Amazon, and Twitter. Celsius EUR, GBP, AUD Savings Account with 15.89% Interest, Blockfi USD Savings Account with 8.6% APY, Blockchains replace Networks with Markets, Zora the Creator Marketplace with Audience Driven Price Discovery, PoolTogether, the NO-loss Lottery & prize-linked savings account, Hyper Valuable Crypto & Blockchain apps and products, What is Yearn.Finance and $YFI: a quant trading firm automated on Ethereum, Island Resort Tokenization. MicroStrategy has recognized Bitcoin as a legitimate investment asset that can be superior to cash and accordingly has made Bitcoin the principal holding in its treasury reserve … Imagine now that just 5% (or $30 billion) of that amount is converted into Bitcoin, the Bitcoin price will automatically skyrocket….. What if Apple or Amazon or Google announced that they had started allocating a small percentage of their treasury cash reserves towards Bitcoin? Bitcoin Initiative – Project Roadmap As a market leader, MicroStrategy is transforming how companies now approach their treasury reserve strategy. We believe investing in Bitcoin would provide not only a reasonable hedge against inflation, but also the prospect of earning a higher return than other investments. 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.”. Tweet on Twitter. The purchase was made from the company’s cash reserves, according to Merrick Okamoto, CEO of the crypto mining group. Bitcoin As a Treasury Reserve Asset Bitcoin is seeing increasing global retail and institutional adoption, with a liquidity profile that provides compositional benefits similar to short-term treasuries. Bitcoin is digital gold – harder, stronger, faster, and smarter than any money that has preceded it. We just had the awful realiza­tion that we were sitting on top of a $500 million ice cube that’s melting. Bitcoin is digital gold – harder, stronger, faster, and smarter than any money that has preceded it. Microstrategy bought $425 million worth of Bitcoin, put it on their balance sheet and made it their primary treasury reserve asset. Microstrategy made headlines with its announcement in September 2020 that they had switched their entire cash reserves into Bitcoin as a part of their long-term capital allocation strategy. For me I view Bitcoin as a true savings technology that stores wealth across time and space. ARK Invest Bitcoin Treasury Reserve Asset Cathie Wood.

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