(Photo via @MicroStrategy on Twitter)
Here are some eye-popping numbers for you: Tysons, Virginia-based MicroStrategy, a publicly traded business intelligence company, purchased 21,454 bitcoins for $250 million.
Founded in 1989, the technology firm manages an enterprise analytics platform that helps companies analyze internal and external data to make better informed business decisions, as well as develop mobile apps. This investment in bitcoin comes as the company announced plans to return a portion of its excess cash to its shareholders, a press release states.
“Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders,” MicroStrategy CEO Michael J. Saylor said in a statement. “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.”
Saylor said that the company spent some months deliberating a strategy for its capital allocation. MicroStrategy ultimately decided to invest capital in bitcoin with the hope of earning a higher return on the investment.
“Our decision to invest in Bitcoin at this time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program ― risks that should be addressed proactively,” the CEO said.
Each bitcoin is priced at about $11,652.80, which includes all fees, Washington Business Journal reported. MicroStrategy plans to also buy back $250 million in stock.
“Bitcoin is digital gold — harder, stronger, faster, and smarter than any money that has preceded it,” Saylor said. “We expect its value to accrete with advances in technology, expanding adoption, and the network effect that has fueled the rise of so many category killers in the modern era.”-30-
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