MicroStrategy becomes first listed company to buy bitcoin as part of its capital allocation strategy

Source: The Block 2020-08-12

MicroStrategy, the Nasdaq-listed business intelligence company, has become the first publicly-traded company to buy bitcoin as part of its capital allocation strategy.

The company announced on Tuesday that it has purchased 21,454 bitcoins (currently worth over $250 million). MicroStrategy first revealed its plan to buy bitcoin as a way to avoid inflation on July 28.

“Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders,” said MicroStrategy CEO Michael J. Saylor. “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.”

It is not clear whether MicroStrategy bought the bitcoins via a crypto exchange or an over-the-counter (OTC) trading desk, and where these bitcoins are held. The Block has reached out to the company and will update this story should we hear back.

MicroStrategy's stock is trading up by more than 5% during pre-market hours.

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MicroStrategy becomes first listed company to buy bitcoin as part of its capital allocation strategy

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