Software firm MicroStrategy is making new headway with bitcoin and says that all its non-employee board members will be paid in BTC rather than cash.
MicroStrategy Is Pushing Further Bitcoin Adoption
The company has been one of the most supportive of the world’s number one digital currency by market cap. During a time when most of the globe’s institutions were still afraid to step in and take control of the financial reins, MicroStrategy led the way by being one of the first largescale companies to ever pledge public support for the asset. The company also took this support to a new level when it decided to purchase more than $250 million in BTC. During that time, bitcoin was trading for around $12,000 per unit (August of 2020).
However, the purchase appeared to be a foolish decision at first given that just a month later, bitcoin went through something of a bear phase and decided to drop approximately $2,000 per unit. Thus, all bitcoins fell from around $12K to $10K, and surely MicroStrategy lost a ton of money thanks to its previous transaction. Many other companies would have likely thrown in the towel, sold the assets at a loss and admitted defeat, but not MicroStrategy.
Instead, the firm decided to up the ante on its BTC bet and purchased even more, thereby bringing its total BTC portfolio to an impressive $400 million. Things remained steady for about a month or so until mid-October when the digital currency suddenly jumped into the $13,000 range following news that PayPal was working towards allowing its customers to purchase digital currencies through its platform and potentially use them to garner goods and services.
Since that time, MicroStrategy has engaged in several other bitcoin purchases and has brought the amount of BTC it owns to more than $2 billion worth. The company has not stopped pushing the asset forward and is ultimately reaping several rewards. Michael Saylor – the firm’s chief executive officer – has even hosted summits to educate other institutions about what they need to do to get involved in crypto trading and add BTC to their balance sheets.
This Might Be a Bit Risky
In a filing with the Securities and Exchange Commission (SEC), MicroStrategy says that the purpose of paying said board members in BTC has to do with its “commitment” to digital currency. The news is unique in that bitcoin is now being used for salary payments, though one could potentially argue that maybe the company is taking things a bit too far.
After all, bitcoin is known for being one of the most – if not the most – volatile assets in the world. Using BTC to give people the money they need to survive and feed their families is crossing into risky territory given that the price of the currency could wind up sinking at any point in time.