Nasdaq-listed company announces purchase of 21,454 Bitcoins worth $250 million to hedge against inflation.

It was previously stated that BI company MicroStrategy, which had $250 million in capital reserved for alternative assets, has confirmed in yesterday's announcement that all funds have been used to purchase Bitcoin (a total of 21,454 coins).

Investing in Alternative Assets to Combat Inflation

According to previous reports, MicroStrategy, a global business intelligence (BI) service provider that has been recognized by Gartner for eight consecutive years, stated during a conference call on July 28th that the U.S. government's continuous market stimulation through monetary policies over the past three months has had a serious impact on the macroeconomy.

CEO Michael Saylor mentioned that MicroStrategy's balance sheet holds a significant amount of U.S. dollars. However, with the U.S. government unlikely and not considering raising deposit rates in the short term, holding a large amount of U.S. dollars is not a good choice for asset allocation. Michael Saylor stated:

"The U.S. Dollar Index (DXY) is weakening. Confidence in the overall market and fiat currencies is diminishing, and we have seen rebounds in most asset classes in the second quarter. Therefore, continuing to hold a large amount of U.S. dollars as an asset allocation strategy is not a wise choice, prompting us to reconsider this."

In response, Michael Saylor announced that the company will adopt a new financial strategy in the coming year. In addition to returning a portion of capital ($250 million) to shareholders through stock buybacks, another portion of capital ($250 million) will be invested in alternative assets other than the U.S. dollar to hedge against potential losses from currency inflation. According to the conference call records, these alternative assets include gold, silver, and Bitcoin as inflation-resistant store of value tools.

Decision to Purchase 21,454 Bitcoins

It was widely believed that the company would only allocate a small portion from the $250 million as seed capital for Bitcoin. However, according to yesterday'sofficial announcement, the company has confirmed that all funds will be used to purchase Bitcoin (a total of 21,454 coins). Michael Saylor stated in the announcement:

"The investment in Bitcoin is part of our latest financial strategy, which aims to maximize long-term asset value for our shareholders. This investment also reflects our belief that Bitcoin, as the most widely used cryptocurrency in the world, is a reliable store of value and an attractive investment asset with greater long-term appreciation potential compared to holding cash."

Since the announcement, MicroStrategy's stock price has risen by approximately 10%.