The CEO of MicroStrategy, a public company that has been in the financial sector for the past 30 years, has revealed the reasons why the company is converting its $250 million holdings into bitcoin i.e. transferring the entire amount to get 21,454 bitcoins.

The company says it has invested in bitcoin as per its financial reports for the first quarter of 2020, and also mentions dedicating a “two-way capital allocation strategy” geared towards maximizing long-term shareholder value.

Initially, MicroStrategy worked on the first tier and returned portions of the remaining cash to shareholders.

Then the company launched a cash tender offer of $ 250 million to acquire 21,454 Bitcoin, making MicroStrategy meet its second prong, as it promised to invest about $ 250 million either in investments or assets, one or several alternative investments.

Read:Venezuela Finishes Testing Using Bitcoin as an Option to Pay Fee for Official Documents

Why MicroStrategy invested $250 million in Bitcoin:

Mr. Michael J. Saylor, CEO of MicroStrategy, said investing in bitcoin indicates the company’s credibility and confidence in bitcoin as the world’s most popular cryptocurrency.

The company also revealed that it identifies bitcoin as a legitimate investment asset that trumps cash.

Saylor told MicroStrategy that MicroStrategy’s decision to invest in bitcoin was largely driven by macro factors destabilizing the global economic and trading landscape.

Global politics and the Corona virus:

Saylor pointed out that the Corona virus, global politics, and some other related issues, made the company look for an alternative in cryptocurrencies.

In the long term, the CEO of MicroStrategy said that government fiscal stimulus, such as the quantitative easing that has been adopted globally, will significantly affect fiat currencies and some other traditional assets.

After monitoring the current situation, MicroStrategy says it has decided to invest in Bitcoin to circumvent the current economic situation.

Bitcoin is forming a strong support at $11,500, with a target resistance of $12,500.

Since the end of July, Bitcoin has been steadily heading towards the top of the market with a strong rally pointing to more bullish forces.

Read:How much did Tesla make after buying $1.5 billion in Bitcoin?

The rally above the $10,000 psychological resistance was too big for the leading digital asset, yet there are still quite a few hurdles for the cryptocurrency to achieve its top figure at the end of 2017.

At the moment, Bitcoin appears to have formed a support at $11,500 as the cryptocurrency tested this area recently and rebounded sharply.

The $11,500 point stands as Bitcoin’s neckline and analysts have declared that staying above this point makes Bitcoin bullish.

Read also:

Huobi invests tens of millions in DeFi investment and research

LINK Coin Achieves ROI Over 100X Since Initial Coin Offering (ICO)