This follows an update the company provided the SEC about its bitcoin investment plan. In the filing dated Sept. 11, the Nasdaq-listed company revealed that its board of directors has adopted a new Treasury Reserve Policy “that updated the company’s treasury management and capital allocation strategies.”
Under this new policy, the company’s treasury reserve will consist of two types of assets. The first type comprises “cash, cash equivalents, and short-term investments … held by the company that exceed working capital needs.”
The second type consists of “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.” Microstrategy clarified: “As a result of this new policy, the company’s holdings of bitcoin may increase beyond the $250 million investment.”
Michael Saylor, Microstrategy’s CEO, has not always been pro-bitcoin. He tweeted back in 2013: “Bitcoin days are numbered. It seems like just a matter of time before it suffers the same fate as online gambling.”
Microstrategy, which describes itself as “the largest independent publicly-traded business intelligence company,” announced its new capital allocation strategy in an earnings call on July 28, indicating that it would buy bitcoin. The company followed up with an announcement on Aug. 11 that it had purchased 21,454 bitcoins at an aggregate purchase price of $250 million, inclusive of fees and expenses. The crypto community views the two purchases by Microstrategy as very bullish.
Not All Crypto Cards Are Created Equal
BitPay, the Atlanta-based cryptocurrency services provider, has recently released blockchain payment statistics that show how the market performed in 2020. Among other interesting points, the data signals strong support from U.S. consumers for the company that announced its first Mastercard branded card just a few months ago.
According to the statistics, the total number of crypto transactions processed through BitPay across all supported coin types reached a new high in July 2020 of almost 110,000 processed transactions. The figures also show a stable month over month growth trend in processed transactions since March.
The great popularity of BitPay services for making and accepting crypto payments enables us to learn about the widespread usage of top assets in the whole market. The BitPay statistics reveal that while bitcoin remains the most used crypto, it is steadily losing ground in terms of load dominance. This happens as users are switching over to a variety of top digital assets such as BCH, ETH, XRP and the stablecoin USDC, in order to load their cards.