MicroStrategy has been the face of institutional crypto adoption over the past year, with the firm committing a sizable portion of its balance sheet to Bitcoin. However, having reaped significant benefits in its investment, the company doesn’t seem ready to stop anytime soon.
Bitcoin’s Been Good to MSTR
MicroStrategy announced its financial results for the fourth quarter of 2020. In the financial disclosure, the business intelligence company explained that it had witnessed a “transformational year” in 2020, with new products coming in and a substantial increase in revenues from its current product line.
However, the Virginia-based company also highlighted its decision to move to the Bitcoin standard. In the disclosure filing, MicroStrategy claimed that its decision had so far benefitted its bottom line and standing as a company, and that it will be looking to improve its exposure to the leading cryptocurrency.
“Regarding our bitcoin strategy, our pioneering decision to make bitcoin our primary treasury reserve asset has made MicroStrategy a thought leader in the cryptocurrency market and generated great interest in MicroStrategy as a corporation. Going forward, we continued to plan to hold our bitcoin and invest additional excess cash flows in bitcoin.”
MicroStrategy’s Bitcoin exposure has been a significant talking point for industry insiders. The company began its purchase in the middle of last year, amassing up to $425 million in the asset before September. With Bitcoin gearing up for its recent astronomical price jump, MicroStrategy quickly issued $650 million in convertible senior notes, pledging to use a vast majority of the funds raised to purchase more of the asset.
2020 Off to a Roaring Start
The firm has so far kept up with its Bitcoin commitment this year. Following the asset’s drop from its new all-time high of $42,000, the Virginia company quickly lapped up more of it, buying the dip with another purchase worth $10 million.
MicroStrategy is so fixated on Bitcoin that it is trying to get other companies to get in on the asset as well. Earlier this month, the firm announced “Bitcoin for Corporations,” a two-day virtual conference open to any company looking to follow in its footsteps.
On Feb 3 & 4, @MicroStrategy will host Bitcoin for Corporations. Join our officers, industry luminaries & strategic vendors for a free, online, accelerated course in #Bitcoin strategy & tactics to grow your company & create shareholder value.https://t.co/dHYPyWGxbo
— Michael Saylor (@michael_saylor) January 12, 2021
The event, backed by industry heavyweights like Coinbase and Grayscale Investments and will hold next week, will focus on companies and the different methods they can incorporate Bitcoin into their treasuries. Other topics covered will include accounting, tax and audit, and regulatory considerations viz a viz Bitcoin.