Quote from: fillippone on August 11, 2020, 01:52:51 PM

First, the news:

MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

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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 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.

Source link: https://www.businesswire.com/news/home/20200811005331/en/MicroStrategy-Adopts-Bitcoin-Primary-Treasury-Reserve-Asset

This is the main statement:

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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. This investment reflects our belief that Bitcoin, as the worlds most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash. 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 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.

Coindesk realunched the news:

MicroStrategy Buys $250M in Bitcoin, Calling the Crypto Superior to Cash

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Publicly traded business intelligence firm MicroStrategy purchased 21,454 bitcoin on Tuesday, effectively pouring all $250 million of its planned inflation-hedging funds into the digital currency.

Disclosing its bitcoin buy alongside an equivalent stock buyback in a Tuesday Securities and Exchange Commission filing, MicroStrategy, a Nasdaq-listed software firm worth over $1.2 billion, said the cryptocurrency provided a "reasonable hedge against inflation" in a press statement shared with CoinDesk.
This investment reflects our belief that bitcoin, as the worlds most widely adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash," said CEO Michael J. Saylor.
Saylor cited forces working to weaken fiat currencies COVID-19, global quantitative easing measures, political and economic uncertainty but also the technical and qualitative aspects that he said give the bitcoin blockchain strength.
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," Saylor said.
The capital allocation quickly fulfills Saylor's late July promise to shareholders that his company, which he founded in 1989, would buy back $250 million in stock and invest an additional $250 million in gold and bitcoin over the next 12 months. The belief was that these and other "alternative investments" would protect MicroStrategy's dollar-heavy balance sheet.
It is now clear that half of the $500 million bet turns entirely on bitcoin. MicroStrategy "accordingly has made bitcoin the principal holding in its treasury reserve strategy," Saylor said.

Source link: https://www.coindesk.com/microstrategy-bitcoin-buy-protects-against-fiat-inflation

My Commentary:
This is so big: A publicly traded firm decided to invest half of his 500 millions excess cash reserves buying bitcoin, deliberately dumping the ever value loser, inflationary, exponentially printed fiat currency, to embrace the superior hard money, digital gold, Bitcoin.
This is so bullish. A new era for Bitcoin in the path of a recognition as a superior Store Of Value.

A few tweet about this:

Gabor Gurbacs

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Publicly traded company MicroStrategy adopts #Bitcoin as a treasury reserve asset to hedge against fiat inflation. MicroStrategy allocates $250mm to Bitcoin. This is a big deal and good to see #Bitcoin used as intended: hard money/savings instrument.

https://twitter.com/gaborgurbacs/status/1293153751549784064

PlanB

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#Phase5

https://twitter.com/100trillionUSD/status/1293174076299673600?s=20

Barry Silbert, GrayScale CEO:

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MicroStrategy, a $1.2 billion company, just turned itself into a publicly-traded bitcoin play. Smart

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Gradually, then suddenly

https://twitter.com/barrysilbert/status/1293151330467565570?s=20

https://twitter.com/barrysilbert/status/1293162827478335488?s=20

Micheal Saylor himself has been interviewed by Antony Pompliano in his Podcast:

The Pomp Podcast #385: Michael Saylor On Buying Bitcoin With His Balance Sheet

Youtube Version:
The Pomp Podcast #385: Michael Saylor On Buying Bitcoin With His Balance Sheet

https://i.imgur.com/juxQtZl.png

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This is an episode of The Pomp Podcast with host Anthony "Pomp" Pompliano and guest, Michael Saylor, an entrepreneur and business executive, who co-founded and leads MicroStrategy, a company which provides business intelligence, mobile software, and cloud-based services. He has become well known in the Bitcoin community for using the company's balance sheet to purchase more than $400 million of Bitcoin.

In this conversation, we discuss how Michael built MicroStrategy, what his $500 million dilemma earlier this year was, and why he choose to put more than $400 million into Bitcoin with the company's balance sheet.

THIS IS GREAT NEWS!

Johny H.

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