World’s Biggest Business Intelligence Firm Buys 21K Bitcoin for $250M

The world’s largest publicly traded business intelligence company MicroStrategy (Nasdaq: MSTR) has formally adopted Bitcoin (BTC) as its primary reserve asset.

In a press release issued on Aug. 11, MicroStrategy confirmed it had purchased 21,454 BTC for $250 million.

MicroStrategy: Move “reflects our belief in Bitcoin”

Michael J. Saylor, CEO of MicroStrategy, commented in the press release:

“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.”

The move marks a watershed moment for institutional uptake of Bitcoin, and did not go unnoticed by commentators.

“I suggested 6 months ago, we are now starting to see businesses owning Bitcoin as a marketable security on their balance sheet,” well-known commentator Preston Pysh responded on Twitter.  

“MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset.  Just. Getting. Started.”

1-month MSTR stock price performance. Source: Nasdaq

Originally announced on July 28, the move has nonetheless had a noticeable impact on MicroStrategy’s stock price, which has gained 5.7% since. At the same time, the price of Bitcoin has gained over 10%.

Barry Silbert, CEO of crypto investment giant Grayscale, also praised the company’s decision.

He tweeted:

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