MicroStrategy says it may boost its bitcoin holdings past $250M, per new filing

MicroStrategy says it may boost its bitcoin holdings past $250M, per new filingMicroStrategy says it may boost its bitcoin holdings past $250M, per new filing

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="A publicly-traded company called MicroStrategy made waves last month for allotting some of its strategic capital into bitcoin — some $250 million, as reported at the time.” data-reactid=”19″>A publicly-traded company called MicroStrategy made waves last month for allotting some of its strategic capital into bitcoin — some $250 million, as reported at the time.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="MicroStrategy had previously indicated that it saw bitcoin and other alternative investments as a means to avoid inflation, noting that "it makes sense to shift our treasury assets into some investments that can’t be inflated away or are less likely to be inflated away."” data-reactid=”20″>MicroStrategy had previously indicated that it saw bitcoin and other alternative investments as a means to avoid inflation, noting that “it makes sense to shift our treasury assets into some investments that can’t be inflated away or are less likely to be inflated away.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="A new filing from September 14 indicates that the company might be eyeing additional bitcoin purchases.&nbsp;” data-reactid=”21″>A new filing from September 14 indicates that the company might be eyeing additional bitcoin purchases. 

The new filing follows a September 11 board meeting, during which new Treasury Reserve Policy was adopted.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=""Under the new Policy, treasury reserve assets will consist of (i)&nbsp;cash, cash equivalents, and short-term investments (“Cash Assets”) held by the Company that exceed working capital needs and (ii)&nbsp;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," the filing states, adding:” data-reactid=”27″>“Under the new Policy, treasury reserve assets will consist of (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,” the filing states, adding:

“As a result of this new Policy, the Company’s holdings of bitcoin may increase beyond the $250 million investment that the Company disclosed on August 11, 2020.”

 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="©&nbsp;2020&nbsp;The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.” data-reactid=”32″>© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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