The Nasdaq-listed American company, software company Microstrategy, bought Bitcoin in the value of over $ 250 million – an announcement that drove the stock price by 10 per cent in the height.
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Bitcoin as a safe investment
How Microstrategy on Tuesday announced that Bitcoin is now a cornerstone of your financial strategy for the coming years – especially as the USA had to struggle with the effects of the Coronavirus pandemic, and the risks of over-inflation to.
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According to the company, the “special characteristics” of Bitcoin made it hard to believe that an investment in the crypto-currency would not only provide a reasonable hedge against Inflation, but also the prospect of a higher return than other investments.
In total, the company received about 21.454 Bitcoins for a total purchase price of 250 million US-dollars, including fees and expenses. Michael J. Saylor, CEO of MicroStrategy, has, meanwhile, on the company’s investment in Bitcoin as part of the new capital allocation strategy that maximizes Shareholder Value.
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However, the decision to buy Bitcoin, not over night. Instead, the company spent “months” in order to determine the allocation of capital, and leads to economic factors, such as excessive money printing and a gloomy economic forecast as the main factors behind the decision.
Saylor:
“This investment reflects our Belief that Bitcoin, as the world’s most widely used crypto-currency, a reliable value of the bailee, and a more attractive investment is more long-term value increase potential as the Holding of cash.”
Saylor, according to Bitcoin, have developed into a significant complement to the global financial system, with properties that are both for individuals as well as institutions useful. Thus, BTC was a “legitimate investment” for MicroStategy, and the most important developing Holding company in its financial reserve.
Saylor sees bitcoin global acceptance, brand awareness, the vitality of the Ecosystem, the dominance of the network, the architectural load-carrying capacity, the technical Use and the community’s ethos as some of the factors that stand behind the “Superiority of Bitcoin as an asset class for those looking for a repository of long-term Value”.
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He commented that Bitcoin is “digital Gold” and “harder, stronger, faster, and smarter” than any of the money had preceded him. Saylor expects, furthermore, that his value with the advances in technology, the increasing acceptance and the network effect that has fueled the rise of so many of the killer categories in the modern Era will rise.
In the meantime, the news made the MicroStrategy share of over 10 percent. Twitter-according to commentators, this alone is about $ 250 million worth – enough to cover the Bitcoin investment of the company.
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Micro Strategys conclusion for Bitcoin Investment:
“We believe that these and other factors could have a significant downward effect on the long-term real value of Fiat currencies, and many other conventional forms of investment, including many of the assets that are traditionally held as part of the Treasury operations of the company”.
Can only hope that Bitcoin and other crypto-currencies with the hoped-for success to prevail.