Cryptocurrencies, especially Bitcoin (BTC), are winning not just individual investors but also large and publicly-traded companies. Most recently, a billion-dollar company, MicroStrategy, disclosed plans to diversify its cash holdings in alternative assets, mentioning the largest cryptocurrency as one of those assets. This comes amid the diminishing value of the United States dollar.
MicroStrategy will invest some of $250 million in Bitcoin
Precisely, the enterprise business intelligence application software provider, MicroStrategy, said it is looking to diversify its cash holdings to alternative assets like Bitcoin, Silver, and Gold. One might predict the company will invest in Bitcoin with a reasonable amount, given that it mapped out about 230 million for the assets’ investment.
While commenting on the development, Phong Le, the President and CFO of MicroStrategy, explained:
We will seek to invest up to another $250 million over the next 12 months in one or more alternative investments or assets which may include stocks, bonds, commodities such as gold, digital assets such as Bitcoin, or other asset types.
MicroStrategy invest in Bitcoin to hedge against the diminishing dollar
As was disclosed by the Chairman of MicroStrategy, Michael Saylor, the company plans to invest in Bitcoin and other assets to run away from the diminishing value of the dollar. Saylor explained that they have a significant amount of US currency on their balance sheet. Per se, the drop in the value of the US dollar would affect the company as well.
Saylor added:
If you have large dollar values and you’re hoping for any kind of return on them, that’s faded,” he added. “Gold, silver, and bitcoin are showing strength.
The development is quite a milestone, although the company didn’t state precisely how much will be going into the cryptocurrency. However, MicroStrategy’s interest to invest in Bitcoin would probably call other companies to consider assets like Bitcoin as a hedge against the falling value of the US dollar.
