First, the company’s CEO, Michael Saylor, is a big believer in Bitcoin and its potential as a store of value. Microstrategy is one of the largest publicly traded business intelligence companies. In 2020, the company made a large investment in Bitcoin, buying 21,454 BTC for $250 million. This was not a one-time purchase, but rather the first part of a larger strategy to invest up to $425 million of the company’s cash reserves into Bitcoin.
Saylor’s high-profile embrace of Bitcoin helped legitimize the asset class and attract mainstream attention. His actions also seemed to inspire other companies to follow suit. Microstrategy owns about 3 billion USD worth of Bitcoin.
Firstly, they believe that Bitcoin is a good hedge against inflation. With central banks around the world printing more and more money, the value of fiat currencies is going down. Bitcoin, on the other hand, is limited in supply and has been increasing in value over time. Bitcoin is often thought of as a speculative investment, but it can also be a helpful hedge against inflation.
Inflation occurs when the prices of goods and services increase over time. This decrease in purchasing power can be caused by a number of different factors, including economic recessions, natural disasters, and political instability.
Bitcoin can help to protect against inflation in a few different ways. First, since Bitcoin is not a physical commodity, its supply is not subject to the same kinds of fluctuations as other assets. Second, Bitcoin is not controlled by any central authority. Bitcoin is a digital currency that is not controlled by any central authority. This makes it a great choice for online transactions, as it is not subject to the whims of governments or financial institutions.