MicroStrategy, a Nasdaq-listed software firm worth over $1.2b, said the cryptocurrency provided a "reasonable hedge against inflation". According to the company, the weakening USD is no longer a tenable place to park MicroStrategy’s sizable cash reserves.
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MicroStrategy buys $250m in Bitcoin, calling the crypto ‘superior to cash’
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 MicroStrategy would buy back $250 million in stock and invest an additional $250 million in gold and bitcoin over the next 12 months.
