U.S. markets closed
  • S&P Futures

    4,122.75
    -1.75 (-0.04%)
     
  • Dow Futures

    32,734.00
    -3.00 (-0.01%)
     
  • Nasdaq Futures

    13,017.25
    -14.25 (-0.11%)
     
  • Russell 2000 Futures

    1,913.20
    -1.40 (-0.07%)
     
  • Crude Oil

    90.16
    -0.34 (-0.38%)
     
  • Gold

    1,807.70
    -4.60 (-0.25%)
     
  • Silver

    20.43
    -0.05 (-0.25%)
     
  • EUR/USD

    1.0218
    0.0000 (-0.00%)
     
  • 10-Yr Bond

    2.7970
    +0.0320 (+1.16%)
     
  • Vix

    21.77
    +0.48 (+2.25%)
     
  • GBP/USD

    1.2084
    +0.0007 (+0.06%)
     
  • USD/JPY

    134.9240
    -0.1920 (-0.14%)
     
  • BTC-USD

    22,910.05
    -918.28 (-3.85%)
     
  • CMC Crypto 200

    531.74
    -25.61 (-4.59%)
     
  • FTSE 100

    7,488.15
    +5.78 (+0.08%)
     
  • Nikkei 225

    27,808.14
    -191.82 (-0.69%)
     

Business Analytics Firm MicroStrategy To Rely On Bitcoin As Primary Treasury Reserve Asset

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

MicroStrategy Incorporated (NASDAQ: MSTR), in a filing with the United States Securities and Exchange Commission on Monday, disclosed that it would adopt a new Treasury Reserve Policy with renewed treasury management and capital allocation strategy.

The policy indicates that the company is bullish on Bitcoin and that the open-sourced digital asset would be treated as an important component of the treasury reserve assets.

What Happened: In its updated policy, the Virginia-based business intelligence company declared that it would treat Bitcoin as the primary treasury reserve asset on an ongoing basis.

This would in turn lead to a higher Bitcoin exposure that is more than the $250 million investment the company reported in an earlier filing in August. Cash, Cash equivalents, and short-term investments above the working capital threshold will also be categorized as a treasury reserve asset.

Why Does It Matter: According to a Coindesk report last month, the company expressed its belief that the virtual currency powered by a public blockchain is superior to cash over the long term, claiming it to be a “reasonable hedge against inflation.” At the time, MicroStrategy committed to investing up to $250 million in Bitcoin and gold.

MicroStrategy CEO Michael J. Saylor also remarked that the cryptocurrency “is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.”

Price Movement: After a 1.06% price rise during trading hours on Monday, MSTR stock closed at $142.62.

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.