Institutional bets! MicroStrategy spent $250 million on 21000 bitcoins!

MicroStrategy is the world’s largest independent publicly traded business intelligence company with a leading enterprise analysis platform. The company’s vision is to fully realize the intelligent world. MicroStrategy provides modern analysis on an open integrated enterprise platform. The platform is optimized for cloud deployment and local deployment, and has “super intelligent products”. This is a breakthrough technology, which can cover operable enterprise data on popular business applications, so as to help users make more intelligent and faster decisions. Currently, MicroStrategy has been approved by the global top 500 companies Widely used. On August 11, MicroStrategy announced that it had purchased 21454 bitcoins for us $250 million. On July 28, 2020, MicroStrategy released its second quarter financial results and formulated its capital allocation strategy. The strategy is divided into two parts: the first is to return a portion of its excess cash to shareholders and launch a cash offer through a revised Dutch bid to buy back $250 million of the company’s class a common shares. The second is to spend $250 million to buy 21454 bitcoins. < / P > < p > “the investment in LTC is part of our new capital allocation strategy, which seeks to maximize long-term value for shareholders. We believe that bitcoin, as the most widely used cryptocurrency in the world, is a reliable value store and an attractive investment asset with greater long-term appreciation potential than cash holdings. Since its inception more than a decade ago, bitcoin has become an important complement to the global financial system, and its characteristics are valuable to individuals and institutions. We have seen bitcoin as a legitimate investment asset superior to cash, and have made bitcoin a major asset allocation in the company’s fiscal reserve strategy. ” < / P > < p > “MicroStrategy has spent several months determining the capital allocation strategy. Part of the reason why we decided to invest in bitcoin is the combination of a series of macro factors that affect the economic and business landscape. We believe that this will bring long-term risks to the company’s financial plan, so we need to actively deal with these risks. These macro factors include: the economic and public health crisis caused by the new epidemic, unprecedented government fiscal stimulus measures, including the global quantitative easing policy, and the global political and economic uncertainty. We believe that these factors, together, are likely to devalue fiat money and many traditional assets in the long run. ” < / P > < p > in considering various potential asset classes, MicroStrategy has observed the unique attributes of bitcoin. The company believes that investment in bitcoin can not only effectively hedge against inflation, but also achieve higher returns than other investments. < / P > < p > Saylor explains, “we found that bitcoin’s global acceptance, popularity, ecosystem vitality, network advantages, structural resilience, technical practicality, asset class advantages, and community spirit are strong evidence of its long-term storage value and are well suited for long-term investment. Bitcoin is digital gold. It is stronger, stronger and smarter than any currency in the past. We hope that its value will grow with the progress of technology, the expansion of adoption and the increase of network effect, especially the network effect, which has promoted the rise of many modern asset classes. ” < / P > < p > as a leader in business intelligence, MicroStrategy has 30 years of experience in technology trend forecasting and is one of the first companies in the field of enterprise business intelligence software. It is a pioneer in relationship analysis, network intelligence and mobile intelligence, and has recently launched “super intelligence products” – embedded in applications to make them smarter, faster and stronger. < p > < p > in 2012, Saylor wrote a book on the impact mobile computing will have on business, consumer and political behavior, and on the rise of apple, Google, Facebook, Amazon and twitter. MicroStrategy believes that the world is entering a “virtual wave” – the rapid dematerialization of products, services and processes driven by technological progress. Today, the new outbreak crisis is also a catalyst for this wave. < / P > < p > MicroStrategy believes that in the face of rapidly changing market demand, digital transformation has begun to accelerate, and is also prompting many companies to rethink their products, operations and systems, as well as balance sheet and financial strategies. Microstrategp > is one of the most respected business organizations in the world. The strategy includes seeking to increase revenue through its super intelligence, cloud intelligence and embedded intelligence products, focusing on simplifying products, pricing, and cloud services. The company’s goal is to generate long-term operating income and free cash flow, so it adopts a new capital allocation strategy. MicroStrategy believes that the purchase of $250m of bitcoin will provide an opportunity for it to achieve better returns and maintain its capital value over time, compared with holding cash. “MicroStrategy’s corporate strategy and new capital allocation strategy are designed to benefit shareholders, customers, partners and employees,” said Phong Le, President and chief financial officer of MicroStrategy Barry Silbert, CEO of cryptocurrency investment giant grayscale, also praised MicroStrategy’s decision. He tweeted that as a company with a market value of 1.2 billion, it is very smart to purchase bitcoin publicly, which may help to link MicroStrategy’s valuation with bitcoin. < / P > < p > in fact, MicroStrategy is not the only company trying to link the company’s valuation with the price performance of bitcoin. Overstock, a famous online retailer, has also invested heavily in cryptocurrency. With the popularity of bitcoin, even if the core business of the company declines, the strategy may also play a role in boosting the stock price. Fifth personality will be updated, please remember your game account, otherwise you may not be able to play normally

Author: zmhuaxia