bitcoinworld.co.in
The leading business intelligence company, MicroStrategy, has announced its plans to start paying some of its Board directors with Bitcoin. MicroStrategy filed the form 8-K with the U.S. SEC (Securities and Exchange Commission) yesterday. It elucidated that from April 11 onwards, its non-employee directors on its board will receive all payments for their service in Bitcoin crypto rather than cash.
MicroStrategy further reveals that its four independent directors’ compensation fees would be converted from U.S. dollars into crypto at the payment time. It will process through a payment processor and then deposited into the digital wallets of the director. The decision is part of the company’s commitment to bitcoin, provided crypto asset’s ability to serve as a store of value. Moreover, in enhancing recording one of the most bullish Bitcoin outlooks in the history of SEC forms, MicroStrategy may be laying the foundation for other large businesses to compensate their boards or other employees with bitcoin. Additionally, MicroStrategy has organized a “Bitcoin For Corporations” summit to help select its peers to a bitcoin standard.
MicroStrategy Holds Over 90,531 Bitcoins
The news joins MicroStrategy’s long line of investments into bitcoin, which started in August 2020. MicroStrategy commenced acquiring bitcoin in August last year. During that time, MicroStrategy’s CEO Michael Saylor contends that the reason behind the company investing in bitcoin is to maximize long-term value for shareholders. Saylor defines Bitcoin as the best money ever invented. Moreover, Saylor finds the crypto as a superior asset for a treasury, provided that it is not deflationary by design, compared to the U.S. dollar and gold.
In August last year, MicroStrategy became the first publicly traded firm in the U.S. to fund bitcoin as part of its capital allocation strategy. To date, the company has acquired 90,531 Bitcoin worth about $5.5 billion recently. Such investments reveal the company’s view that the cryptocurrency is a safe store of value and an engaging investment asset with long-term appreciation potential instead of holding cash. Moreover, some analysts have claimed that MicroStrategy’s investments in Bitcoin have led to it growing in a de facto Bitcoin ETF in the absence of one in the U.S.