The NASDAQ-listed business intelligence company, MicroStrategy, has revealed in a recent filing with the United States Securities and Exchange Commission (SEC) that some of its Board of Directors will receive their compensations in Bitcoin (BTC).
MicroStrategy to Pay in BTC for Board Services
In the Form 8-K document filed with the SEC, the company disclosed that its non-employee directors would receive Bitcoin as a form of compensation for Board service. Henceforth, all the payable Board fees for the non-employee directors will be converted from US dollar to the cryptocurrency and transferred to their designed wallet address, according to the modified compensation arrangements.
The development comes amid the Board’s commitment to Bitcoin. This is not surprising because MicroStrategy has shown a keen interest and support for Bitcoin over the past months.
The business intelligence company suddenly turned Bitcoin into its main reserve assets following the outbreak of coronavirus. At the time, the company’s CEO Michael Saylor noted that the cryptocurrency was a better inflation hedge and a store of value. This seems been the main reason behind the massive BTC amount purchased by the company so far.
MicroStrategy: the Largest Corporate Bitcoin Investor?
About a month ago, MicroStrategy reportedly bought 262 Bitcoins at nearly $58,000 USD. In total, MicroStrategy held about 91,579 BTC in its balance sheet as of 5 April 2021. Following the market value of BTC, these coins are worth over $5.7 billion USD, making the company on of the largest Bitcoin corporate investors.
Like MicroStrategy, many other publicly-traded companies have invested in cryptocurrencies, including Tesla, Square and others. Many industry players believe there is still more room for Bitcoin to grow, as several public companies are yet to include BTC in their balance sheet.
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