As the number of mainstream organizations investing in Bitcoin and other digital currencies continues to rise, it now seems like they can’t get enough of the new asset class.
MicroStrategy, a business intelligence (BI) application software vendor worth over $1.2 billion, mentioned in a new filing with the US SEC today that it might be adding more Bitcoins to its existing 21,454 BTC reserve.
The company stated in the filing: “Under the new Policy, treasury reserve assets will consist of (i) cash, cash equivalents, and short-term investments (“Cash Assets”) held by the company that exceed working capital needs and (ii) bitcoin held by the Company, with bitcoin serving as the primary treasury reserve asset on an ongoing basis, subject to market conditions and anticipated needs of the business for Cash Assets, including future potential share repurchase activity,”
It continued, “As a result of this new policy, the Company’s holdings of bitcoin may increase beyond the $250 million investment that the Company disclosed on August 11, 2020.”
The independent publicly-traded business intelligence company first showed interest in Bitcoin earlier this year in July. The move was part of MicroStrategy’s effort to increase its share buyback capacities, and that led to the addition of Bitcoin as the company’s primary reserve asset.
In addition to the reasons the company decided to add Bitcoin as part of its cash holding, Michael Saylor, Micro Strategy Chairman and CEO stated, “If you have large dollar values and you’re hoping for any kind of return on them, that’s faded. Gold, silver, and bitcoin are showing strength.”
Interestingly, MicroStrategy is not the only mainstream institution that sees Bitcoin’s potential. As reported by Coinfomania last month, Snappa, a popular online graphic platform said it had been accumulating Bitcoin as part of its reserve assets since the COVID-19 induced market crash in March.
The company’s co-founder Christopher Gimmer said Snappa chose Bitcoin over traditional assets in its search for a better alternative to preserve the Canadian dollar’s purchasing power. Gimmer noted that Bitcoin’s scarcity is one of the reasons they settled with the cryptocurrency as a reserve asset.