More Companies Interested in Adopting Microstrategy’s Bitcoin Purchasing Strategy
As the institutionalization of cryptocurrency continues, numerous companies are now seeking to incorporate bitcoin into their reserves and make it a central component of their operational strategies. David Bailey, CEO of Bitcoin Magazine and a crypto advisor during the Trump campaign, has confirmed that companies in two foreign countries are keen on implementing the pioneering business model introduced by Michael Saylor and Microstrategy in the United States.
Bailey stated, “We are currently in negotiations to apply the Microstrategy/Metaplanet approach in two additional foreign capital markets. This strategy is set to gain traction on a global scale.” While Bailey refrained from disclosing the identity of these two capital markets, he did make it clear that Korea was not among them.
Under the leadership of Saylor, Microstrategy has implemented a model that positions bitcoin as an integral part of its operations. The company not only holds bitcoin as a reserve asset but also prioritizes bitcoin acquisitions, even going as far as issuing debt to achieve this objective. The underlying premise is that bitcoin will eventually surpass the value of fiat currencies, enabling the repayment of debt through bitcoin earnings.
Consequently, Microstrategy and the companies that adopt this business model are able to serve as bitcoin proxies, allowing shareholders to indirectly invest in bitcoin. As of April 26, 2024, Microstrategy held a total of 214,400 BTC.
Other companies have already started following Saylor’s playbook. Tokyo-listed public company, Metaplanet, recently unveiled a plan to utilize bitcoin as a reserve asset to hedge against the weakening of the Japanese yen. Since April, Metaplanet has acquired 117.72 BTC and has approved a new purchase worth 250 million yen (approximately $1.6 million) in BTC.
What are your thoughts on the possibility of more companies adopting bitcoin as a reserve asset? Share your opinions in the comments section below.
