MicroStrategy, which is listed on the NASDAQ and has a market cap of $1.2 billion, has become the first publicly traded company to buy Bitcoin (BTC) as a reserve asset. Further, MicroStrategy has decided that Bitcoin (BTC) will be a primary treasury reserve asset, and has purchased 21,454 Bitcoins (BTC) worth $250 million.
To be clear, MicroStrategy is not a crypto company, rather it is a business intelligence company that runs a financial analytics platform. In this case, MicroStrategy has simply decided that instead of solely holding their assets in cash, bonds, gold, and stocks, that a large fraction of their assets should primarily be invested in Bitcoin (BTC).
MicroStrategy’s CEO says “Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders”.
Essentially, any corporation with lots of capital holds a portfolio of various assets, and this is the first time in history that a big non-crypto corporation has chosen to hold a significant amount of their assets in Bitcoin (BTC).
Basically, MicroStrategy recognizes that Bitcoin (BTC) is extremely lucrative and has lots of potential, and has decided to put a large amount of its reserves into Bitcoin (BTC) in the hopes of enriching the company.
This is actually a major milestone for the crypto space, and likely signals the beginning of a trend where major corporations invest large amounts of money into Bitcoin (BTC). This could rapidly lead to the biggest Bitcoin (BTC) rally in history.
Indeed, the $250 million investment from MicroStrategy may have had a strong positive influence on the Bitcoin (BTC) market already, and may partially explain the rally to $12,000. Now if additional corporations decide to follow MicroStrategy’s lead, it could easily lead to an explosive Bitcoin (BTC) rally.
It appears corporations are finally beginning to see Bitcoin (BTC) as a serious asset, and we may be at the beginning of a massive influx of corporate money into Bitcoin (BTC).