For years, enthusiasts of Bitcoin They have been clamoring for the arrival of "institutional money" onto the crypto scene. The belief has long been held that eventually, traditional financial institutions will turn to Bitcoin to operate mutual funds, pensions, and insurance groups. These institutional investors tend to bring hundreds of millions and even billions to the table and could be ready to enter the crypto markets to hedge against US dollar inflation.
In a recent earnings call, the multi-billion dollar company MicroStrategy said they were sitting on a cash reserve of $ 500 million. But President and CEO Michael Saylor said he doesn't think it's too smart to keep that much cash in the long run.
"It makes sense to shift our treasury assets to some investments that cannot be inflated," said the CEO.
Specifically, the company seeks to put half of its $ 500 million cash reserve in alternative reserves of value.
MicroStrategy President and CFO Phong Le outlined the plan.
"We will look to invest up to another $ 250 million over the next 12 months in one or more investments or alternative assets that can include stocks, bonds, commodities like gold, digital assets like Bitcoin or other types of assets."
CEO Michael Saylor even went so far as to say that MicroStrategy believes the US dollar may start to lose value.
“Over time, the performance of our dollar securities has declined and, at times, we had the expectation that we would get higher real returns and therefore there was no real urgency to address this issue. But starting today, we expect negative real returns or negative real returns in US dollars, and that is an expectation that has changed materially over the course of the last three months. "
And MicroStrategy makes it clear what they think the new safe haven is.
“If you have large dollar values and you expect to get some kind of return, that vanished. Gold, silver and bitcoin are showing strength ”.
Alternatives like precious metals and cryptocurrencies are believed to be hedges against this potential loss in value that the US dollar could suffer. The original goal of Satoshi Nakamoto it was to create an anti-inflationary asset that could not be altered by banks or governments. Now that Americans are waiting for a new round of stimulus packages, it seems that some of these institutions are starting to pick up on Bitcoin.
And the crypto community expects a boom when these types of organizations start arriving in droves.