In order to make Bitcoin known to companies, the NASDAQ-listed MicroStrategy held the virtual interactive seminar Bitcoin for Corporations yesterday. The aim of the event is to provide advice on how companies can buy BTC as a treasury strategy.
According to Michael Saylor, CEO of MicroStrategy, the first day was a complete success with over 1,400 companies participating. Day 2 continues today with the focus of the discussion on vendors presenting to attendees.
Bitcoin as a hedge against uncertainty
MicroStrategy hit the headlines in August 2020 as the first publicly traded company to purchase significant amounts of Bitcoin as part of its treasury strategy.
The reasons for this were set out in a press release. It states that the approach aims to maximize long-term value for shareholders. Additionally, Saylor spoke of Bitcoin’s advantages over cash in response to macroeconomic factors.
“MicroStrategy has spent months thinking about determining our capital allocation strategy. Our decision to invest in Bitcoin at this point was partly due to the convergence of macro factors affecting the economic and business landscape. We believe this brings long-term risks to our corporate treasury program – risks that should be proactively addressed. “
Since then, Saylor has become a bitcoin evangelist, advocating the cause on numerous fronts.
More recently, Saylor gave an interview in which he gave a price prediction of $ 15 million per token. He believes it can be done if the flood of capital from all other sectors like real estate, stocks, etc. gets into the leading cryptocurrency.
Not everyone agrees with Saylor’s assessment
Business analyst Frances Coppola welcomed MicroStrategy’s move to use its stacks of cash particularly in an interest-free market. However, she wondered why the company wasn’t investing in new product lines or upgrading existing ones instead of looking into BTC. She also addressed the problem of cash flow risk by making bitcoin heavy.
Additionally, holding significant amounts of BTC may give rise to contemplation that MicroStrategy is an investment company or possibly a de facto exchange-traded Bitcoin fund. The effects can have legal and regulatory consequences.
This problem is perhaps the biggest stumbling block for CEOs jumping on board with Bitcoin. And Saylor is aware of the problem. In a tweet promoting the virtual seminar, he said:
“If you are interested in the legal considerations companies face when integrating #Bitcoin You are not alone in your corporate strategy. We have experts from more than 1,400 companies who will come to us tomorrow for this discussion. Your legal team still has time to attend. “
Day 1 of the event will include a discussion of the legal considerations that companies face when buying Bitcoin.
The feedback shows that the seminar was a huge success. According to Saylor, an “avalanche” of companies will switch from cash to bitcoin within the next 12 months.
Source: BTCUSD on TradingView.com