MicroStrategy becomes first listed company to buy bitcoin as part of its capital allocation strategy

MicroStrategy, the Nasdaq-listed business intelligence company, has become the first publicly-traded company to buy bitcoin as part of its capital allocation strategy.

The company announced on Tuesday that it has purchased 21,454 bitcoins (currently worth over $250 million). MicroStrategy first revealed its plan to buy bitcoin as a way to avoid inflation on July 28.

“Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders,” said MicroStrategy CEO Michael J. Saylor. “This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.”

It is not clear whether MicroStrategy bought the bitcoins via a crypto exchange or an over-the-counter (OTC) trading desk, and where these bitcoins are held. A MicroStrategy spokesperson declined to provide details, telling The Block: "We don't share the logistics involved in making our BTC transactions."

MicroStrategy's stock is trading up by more than 5% during pre-market hours.


Update: This story has been updated to include comment from a MicroStrategy spokesperson.

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Yogita Khatri is a senior reporter at The Block and the author of The Funding newsletter. As our longest-serving editorial member, Yogita has been instrumental in breaking numerous stories, exclusives and scoops. With over 3,000 articles to her name, Yogita is The Block's most-published and most-read author of all time. Before joining The Block, Yogita wrote for CoinDesk and The Economic Times. You can reach her at [email protected] or follow her latest updates on X at @Yogita_Khatri5.

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