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Bitcoin and Fiat

Bitcoin: Now A Treasury Reserve Asset!

US publicly traded company MicroStrategy has invested USD 250 million in more than 21,000 Bitcoin to protect itself and its activities from fiat inflation. Yes you read that right. A US public company is now using Bitcoin as an inflation hedge against the USD.

Michael J. Saylor, CEO, MicroStrategy Incorporated. “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…”

Mr. Saylor continued, “MicroStrategy spent months deliberating to determine our capital allocation strategy. 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. Those macro factors include, among other things, the economic and public health crisis precipitated by COVID-19, unprecedented government financial stimulus measures including quantitative easing adopted around the world, and global political and economic uncertainty. We believe that, together, these and other factors may well have a significant depreciating effect on the long-term real value of fiat currencies and many other conventional asset types, including many of the assets traditionally held as part of corporate treasury operations.”

Normally I would add some context and commentary but in this case I do not need to add anything else. What is your protection strategy going to be?




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