MicroStrategy is a US-based data analytics company which provides software, services and other solutions for enterprise decision making.
The company entered the cryptocurrency news radar in 2020. According to Google Trends, “microstrategy bitcoin” is the #1 search string related to the company in 2020, with a 500% increase in interest.
In August 2020, MicroService made the news when they announced they had adopted Bitcoin as their primary treasury reserve asset.
The company purchased 21,454 BTC at an aggregate price of U$ 250 million (U$ 11,653 / BTC).
MicroService CEO Michael Saylor mentioned several factors that affected the decision, including COVID-19 and government stimulus (possible inflation).
The company’s popularity skyrocketed during this period, achieving peak search volume in August 2020:
The market gave the Bitcoin purchase a sign of approval, when MSTR stock shot up as much as 18% on the news.
The decision received largely favorable coverage in social media:
As I suggested 6 months ago, we are now starting to see businesses owning Bitcoin as a marketable security on their balance sheet. MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset. Just. Getting. Started. https://t.co/dVUOr8Loac— Preston Pysh (@PrestonPysh) August 11, 2020
So it begins: MicroStrategy is the first large corporation to hold bitcoin as a cash reserve asset.— Saifedean Ammous (@saifedean) August 11, 2020
“Bitcoin … is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.”https://t.co/AuRhsNNb3D
As I was saying… crypto shines like gold. @microstrategy‘s move to diversify in favor of digital assets is bold – and brilliant! One of the first companies to do so, but they certainly won’t be the last. https://t.co/2RFS4FZEQH https://t.co/J5szoLnTfT— Brad Garlinghouse (@bgarlinghouse) August 11, 2020
Some of the criticism came from users who believe Bitcoin valuation is too high now or that stablecoins could pose a risk to the liquidity of the investment.
I love Bitcoin, but that’s a ridiculous business decision, especially at that valuation.— David Z. Morris (@davidzmorris) August 11, 2020
In a year they’ll be trying to pay employees with BTC because they don’t have any cash left.— James Hatfield (@_jameshatfield_) August 11, 2020