Bitcoin a Reserve Asset? MicroStrategy Seems To Think So
You may have heard the recent news of MicroStrategy ($MSTR), a NASDAQ listed company, purchasing 21,454 bitcoin for an aggregate purchase of $250 million as a reserve asset on their balance sheet.
This was a major development to see a publicly listed company take a position headfirst into bitcoin.
This speaks volumes for both the asset and the management team at MicroStrategy for being first to jump in such a big way.
Now that one company has made that leap I expect many more will follow suit in quick succession over the coming months.
The reasoning behind getting into bitcoin from MicroStrategy was refreshing to see. Their CEO, Michael Saylor said
“We find the global acceptance, brand recognition, ecosystem vitality, network dominance, architectural resilience, technical utility and community ethos of bitcoin to be persuasive evidence of its superiority as an asset class for those seeking a long-term store of value”.Michael Saylor, CEO of MicroStrategy
This guy gets it. Both he and his company will be rewarded handsomely for being so early to recognize this from an institutional perspective.
When there is a superior monetary asset in the market place, one with an extreme amount of doubt and skepticism against it, those that have taken the time to understand the superior traits of bitcoin such as its scarcity, transfer-ability, portability, hardness, censorship resistance, permission-less global 24/7/365 nature, can position themselves early to capitalize on it.
Also Read: Bitcoin Vs Gold – A better Store of Value
Many companies both large and small will add bitcoin as a reserve asset on their balance sheet in the coming months and years. It is exciting to think about how early we still are in bitcoins monetization and how scarce it really is.
One company, worth about $1.2 billion market cap just bought 21,454 of the 21,000,000 million bitcoin that will ever exist. Only 978 entities could hold that amount of bitcoin EVER. Let that marinate for a minute.
Now imagine how many companies will want to protect their purchasing power all the way from small mom and pop type shops to trillion-dollar behemoths + millions of individuals around the globe. The race is just beginning for those companies with significant capital to acquire bitcoin and MicroStrategy is currently out front.
We are in the early innings of watching bitcoin go from a fringe asset to sitting on balance sheets of publicly traded companies as a reserve asset. Hyperbitcoinization is happening faster than even the most bullish thought.