The bullish case for Bitcoin
NASDAQ listed MicroStrategy adopts Bitcoin as primary treasure reserve asset
I woke up this morning to the news of NASDAQ listed company MicroStrategy adopting Bitcoin as their primary treasury reserve asset. I had to take a moment to let that settle in.
In the announcement the company describes their decision to purchase 21,524 bitcoin at an aggregate price of $250m. MicroStrategy is an enterprise analytics company that has a $1.2b market cap, employs over 2,300 people and has been around since 1989.
Quoting Michael Saylor, MicroStrategy CEO:
“Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders. .. This investment reflects our belief that Bitcoin, as the world’s 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.”
This is the first time a NASDAQ listed entity has backed Bitcoin as a store of value. Bitcoin, a new technology that didn’t exist just 12 years ago. A technology driven by thousands of people globally but that nobody individually owns or controls.
Combine this with the recent announcement by the US bank regulator to allow national US banks and federal savings associations to custody crypto, Coinbase revealing that they have 35 million customers and Grayscale launching a national ad campaign telling people to invest in digital currencies (watch it, it’s pretty cool), it makes sense that I’m even more bullish on Bitcoin and crypto and that the world is slowly waking up to a future reality of programmable money.
I’ll leave you with this Tweet thread that I posted yesterday as my final thought.
Onwards.
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