One of the biggest backers of Bitcoin in the U.S, the business intelligent firm MicroStrategy has gone a step further in embracing Bitcoin by adopting it as a payment form. The software conglomerate is now the set to become the first U.S company to pay its Board of Directors in Bitcoin. The company CEO Michael Saylor announced the decision in a tweet on Monday.
— Michael Saylor (@michael_saylor) April 12, 2021
The company also clarified the methodology of these payments in an SEC filing. Moving forward, the amount payable to the non-employee directors will be converted from USD to Bitcoin and simply transferred into digital wallets owned by the directors.
According to the filing, MicroStrategy’s decision was influenced by Bitcoin’s sovereign monetary policy, its open-source architecture, and the fact that it can serve as a store of value. MicroStrategy has a mammoth holding of 90,000 BTC, with the company buying its first stake in the digital currency back in August 2020. It also made the biggest known purchase of Bitcoin back in February, spending over a billion dollars to buy 19,452 Bitcoins. The firm’s aggressive purchases have also led the way for the likes of Tesla to shift their portfolios towards Bitcoin.
The latest decision can now potentially set a precedent for other companies to adopt Bitcoin as a form of compensation. Saylor also commented on the growing talk that a Bitcoin ETF might be around the corner for the U.S market. He referred to the difficulties of acquiring and understanding Bitcoin in the currency:s early days saying:
When I first considered #Bitcoin it took 4-8 weeks to set up an account to acquire $BTC & 40 hours to understand it. #Gold was available via $IAU & $GLD with a 30 second phone call. I found the difficulty of the best solution to be a compelling advantage.