MicroStrategy makes bitcoin its primary treasury reserve

Last month, MicroStrategy (MSTR +1.2%) shares popped after the company said it would spend half of its $500M cash hoard to purchase bitcoin.

In a new filing, MicroStrategy reveals the board has approved a new policy that splits the treasury reserve assets into “(i) cash, cash equivalents, and short-term investments (“Cash Assets”) held by the Company that exceed working capital needs and (ii) bitcoin held by the Company, with bitcoin serving as the primary treasury reserve asset on an ongoing basis, subject to market conditions and anticipated needs of the business for Cash Assets, including future potential share repurchase activity.”

Under the new policy, MicroStrategy’s bitcoin holdings might increase beyond the previously disclosed $250M.

Previously: MicroStrategy moves its cash into Bitcoin; shares up 9% (Aug. 11 2020)

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