U.S. software company MicroStrategy announced that it has acquired 21,454 Bitcoins for $250 million as part of its new investment strategy. Bitcoin is thus their primary investment to protect themselves against the devaluation of money and other assets.
MicroStrategy is one of the largest companies in the field of Business Intelligence. This week, the company issued a press release in which they presented their new investment strategy. After considering many different assets, MicroStrategy concluded that Bitcoin (BTC) would be the best long-term investment.
MicroStrategy: "Bitcoin is superior to cash.''
According to CEO Michael J. Saylor, their decision was influenced by various risk factors that could endanger our economic environment. These include the COVID 19 crisis, unprecedented quantitative easing (QE) stimulus measures and global political and economic uncertainty.
"We believe that these and other factors combined could cause a significant decline in the value of fiat currencies and many other conventional forms of investment, including many of the assets traditionally held as part of the financial management of companies".
"Bitcoin is digital gold - harder, stronger, faster, and smarter than any previous money." - Michael J. Saylor, MicroStrategy CEO
However, investing in the largest crypto currency is not only intended to provide a hedge against inflation, but also has the potential to generate a higher return than traditional assets. MicroStrategy sees a great future for Bitcoin as long as further technological advances are made, adoption expands, and the network effect continues to grow.
Recognition of Bitcoin as a legitimate asset is increasing
The recognition of Bitcoin as a legitimate investment is steadily increasing. In a recent analysis, the largest US bank, JPMorgan Chase, has shown that Bitcoin will demonstrate a significant growth and maturity process in 2020.
Fidelity Digital Assets, the subsidiary of one of the world's largest asset managers, also published the first report of its Bitcoin investment thesis. The report describes Bitcoin as an emerging value investment and compares it to asset classes such as gold.