MicroStrategy Receives $ 650 Million Bitcoin
The company expressed by word and action strong confidence in Bitcoin as a holder of economic value. Koinal.io provides a similar opportunity for investors. Our online process enables purchasers to acquire Bitcoin using bank debit cards and credit cards.
Converting Cash to Bitcoin
MicroStrategy used a bond program to raise funds to purchase Bitcoin. The sale of $650 million convertible bonds supported the purchasing program. The overall amount of digital currency was 29 thousand and 645 Bitcoin. Purchased at an average price of $21,945, MicroStrategy increased its total Bitcoin holdings to $1.1 billion. The $650 million purchase is the fourth this year. They previously purchased about $425 million in Bitcoin.
Bitcoin as a Hedge
MicroStrategy classified Bitcoin as a reserve asset earlier in 2020. The $650 million purchase followed the earlier practice of replacing cash reserves with Bitcoin. Many companies see the benefit of alternatives to cash reserves. The pandemic era has caused severe disruptions and forced many central governments to take credit and monetary actions. Many government actions increase money supplies and diminish the value of the regular currency. Bitcoin’s resilience stands out to those seeking to retain value in the Pandemic era.
MicroStrategy’s purchases are large and reflective of a broad trend. Many companies consider hedges against inflation, and Bitcoin attracts interest from this audience. The recent growth of Bitcoin and price increases reflect growing demand. Some demand comes from institutional and corporate purchasers seeking to hedge against economic volatility.