"Shareholders will now demand that corporations start acquiring Bitcoin after MicroStrategy mega purchase"
Nasdaq-listed analytics software firm MicroStrategy recently made its second massive bitcoin purchase of $ 175 million. The company's total bitcoin holdings now stand at $ 425 million.
Bitcoin bull Max Keizer, who is also the host of the Keizer Report, appears to be pleased with MicroStrategy's move. Keizer recently noted that the company's investment in bitcoin will motivate other companies to follow suit. In fact, Keizer believes that now the shareholders of other multi-billion dollar corporations will start demanding the diversion of cash holdings to bitcoin.
MicroStrategy doubles its Bitcoin holdings
Earlier this week, MicroStrategy CEO Michael Saylor revealed that the company had purchased $ 175 million worth of bitcoin (16,796 BTC). Notably, this was the company's second bitcoin purchase in the span of two months.
The first purchase was in August, when the company invested $ 250 million of its capital in bitcoin. At the time, the publicly traded firm indicated that investing in bitcoin was part of its strategy to preserve the value of its capital in the face of the weakening dollar.
With MicroStrategy diverting a large chunk of its cash holdings to bitcoin, market watchers are betting that this is setting the stage for other corporations and institutional investors to make a similar move.
‘Shareholders will now * DEMAND * that they implement idle cash in Bitcoin’
In mid-August, Canada-based Middle Eastern restaurant Tahinis switched all of its cash reserves to bitcoin. The CEO of the franchise, Omar Hamam, explained that he had discarded bitcoin for years but eventually gave in and accumulated the asset in his personal account for a couple of months. The decision to convert all of his company's savings into bitcoins was an easy one, as he believes it is a "true savings technology that stores wealth in time and space."
Hamam further stated:
“And that's when we as a company decided to store all of our excess cash reserves in #bitcoin as it offers a much better alternative to saving cash. We will continue to do so for years to come and maybe forever if we don't need the fiat. "
The Tahinis restaurant published a Twitter thread on Sept. 18 in which he tagged several high-profile investors and CEOs, including Jeff Bezos, Warren Buffett, Bill Gates and Elon Musk. The restaurant went on to suggest that they follow suit and allocate some of their companies' cash reserves to bitcoin.
Commenting on this thread, Max Keizer applied that shareholders will now demand that corporations start allocating their idle cash to the flagship cryptocurrency.
$ MSTR declare war on the Fed
Who will join them?
* Every * CFO / CEO, per statues of corporate governance, is now obligated to examine their own “melting ice cube”
– Max Keizer (@maxkeiser) September 18, 2020
The crypto landscape is rapidly evolving. In early May, Wall Street veteran Paul Tudor Jones made headlines after revealing that he had bought the fastest horse of the race (bitcoin, obviously) to hedge against inflation.
With all these mainstream giants buying bitcoin, you know this is a serious game. Next step: more big-name corporations and investors buying bitcoin too. Some industry executives are even predicting that billionaire Warren Buffett will be the next bitcoiner after he recently invested in gold.