Bitcoin has been the talk of the town for the past few months and it’s no wonder why. Since the start of the year, the price of the cryptocurrency has skyrocketed, gaining more than 200% in a matter of months.
As the price of Bitcoin continues to rise, so does the interest of institutional investors. One of the biggest names to enter the Bitcoin market is MicroStrategy, a business intelligence company that recently announced it has purchased over 700 BTC worth over $250 million.
So why did MicroStrategy invest such a large sum of money into Bitcoin? It’s simple – they see the potential of the cryptocurrency and want to capitalize on its growth.
MicroStrategy CEO Michael Saylor has explained that the company believes Bitcoin is a dependable store of value and a hedge against inflation. He believes that Bitcoin will become a global currency and that its long-term potential is immense.
With this in mind, MicroStrategy has decided to allocate a significant portion of its treasury into Bitcoin as part of its capital allocation strategy. This move will help the company to hedge against inflation and protect its shareholders.
The decision to invest in Bitcoin was not made lightly. MicroStrategy conducted extensive research and consulted many experts in the space before making its move.
Now that MicroStrategy is invested in Bitcoin, it remains to be seen how this will affect the company’s bottom line. For now, all signs point to the company making a smart move and one that could potentially pay off in the long run.
