Increasing Holdings Again! MicroStrategy Announces Bitcoin as Primary Reserve Asset, Exceeding $250 Million

Nasdaq-listed company MicroStrategy announced on August 11 that it has decided to invest the remaining $250 million in its balance sheet into Bitcoin as a hedge against inflation. According to the latest report submitted to the U.S. Securities and Exchange Commission (SEC) by the company, MicroStrategy will further increase its holdings of Bitcoin and use it as the primary reserve asset of the company in the future.

Holding to Exceed $250 Million

Previously reported, MicroStrategy, founded in 1989, has been recognized as a global business intelligence (BI) service provider by Gartner for eight consecutive years. During a conference call on July 28, CEO Michael Saylor mentioned that holding a large amount of U.S. dollars is not a wise choice and decided to invest in alternative assets as a hedge.

Subsequently, on August 11, MicroStrategy announced that it had decided to use all remaining funds to purchase Bitcoin (a total of 21,454 BTC). Saylor stated in the announcement:

We find Bitcoin's global acceptance, recognition, ecosystem development, network dominance, as well as its technology and community spirit, very compelling. Bitcoin is digital gold, stronger, faster, and smarter than any currency in the past. We expect its value to rise with technological development, adoption process, and network effect growth.

According to the latest report submitted to the SEC, MicroStrategy's board of directors unanimously approved changes to the "Asset Reserve Policy" on September 11, stating:

Bitcoin will continue to be MicroStrategy's primary reserve asset, and the amount held will depend on market conditions, the company's anticipated cash needs, and future stock repurchase plans. Therefore, MicroStrategy's holdings of Bitcoin may exceed the $250 million investment announced on August 11.

Stirring Imitation with a Single Stone

MicroStrategy's public announcement of using Bitcoin as an asset allocation not only attracted attention from various sectors but also led many small and medium-sized enterprises to follow suit. For example, the Middle Eastern cuisine chain Tahinis Restaurants stated that it had converted all idle assets to Bitcoin. Additionally, a Canadian startup company Snappa announced that it had invested 40% of the company's assets in Bitcoin. Coincidentally, both companies mentioned MicroStrategy's $250 million Bitcoin purchase in their respective statements.

The crypto community is pleased to see MicroStrategy's renewed confidence in Bitcoin. Co-founder of Morgan Creek, Anthony Pompliano, also tweeted on Twitter that he had recorded the latest podcast episode with MicroStrategy CEO Michael Saylor today (9/15) and sought questions from the crypto community for Saylor.

Since the first disclosure of buying Bitcoin, MicroStrategy's stock price (MSTR) has risen by 17%, while Bitcoin has fallen by approximately 9.2%. Nevertheless, the company has decided to expand its Bitcoin holdings, indicating a strong belief in its long-term value.

Update on September 15

According to a tweet from MicroStrategy CEO Michael Saylor here, the company has completed the second round of acquiring 16,796 BTC, bringing the total holding to 38,250 BTC, with an investment of $425 million.