MicroStrategy Is Diversifying Its Cash Into Alternative Assets, Including Bitcoin

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By Trey Thoelcke Updated Published
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MicroStrategy Is Diversifying Its Cash Into Alternative Assets, Including Bitcoin

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By Yassine Elmandjra | @yassineARK

Bitcoin is beginning to infiltrate corporate balance sheets. In its most recent earnings call, for example, MicroStrategy – a business intelligence and cloud-based services company – announced a new capital allocation strategy involving bitcoin.

During the next 12 months, MicroStrategy will allocate $250 million, or half of its cash and cash equivalents, from USD into alternative assets including gold, silver, and bitcoin. In its earnings call, MicroStrategy CEO Michael Saylor explained that alternative assets have been appreciating as the dollar has weakened. With a relatively large reserve of excess cash, MicroStrategy is rethinking its treasury management strategy.

As Saylor noted, “It makes sense to shift our treasury assets into some investments that can’t be inflated away or are less likely to be inflated away including gold, silver, and bitcoin. As we pursue alternative investment strategies for our treasury assets, we expect that we will have more volatility, at least as measured in U.S. dollar terms, looking forward.”

If currencies continue to devalue relative to gold and bitcoin, MicroStrategy’s shift toward inflation hedges like gold and bitcoin could be the start of a larger trend, encouraging other companies to diversify their cash balances into bitcoin.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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