Reshab AgarwalAt this point, we can call Microstrategy the synonym of Bitcoin. The company has invested billions in purchasing Bitcoins and plans to convert 100% of its treasury into cryptocurrency. At present, it is holding over 90k Bitcoins whose value has already doubled from the invested amount. And now MicroStrategy says they will pay their board of directors in Bitcoin. This move by the company shows that they not only plan to invest but also use Bitcoin in the company’s operations. This also shows the craze for people wanting to become a bitcoin millionaire is insane.
Microstrategy to pay salary in Bitcoin!
Image Source: Yahoo Finance
There are a lot of companies that have invested in Bitcoin but only a few have actually embraced crypto in its full form. And Microstrategy is one of the few companies. It considers Bitcoins as a store of value, a hedge to inflation, and a way to preserve the value of your money. And so, it is more than obvious that the company has now considered paying in the same form of currency to its board of directors. It recently filed a form with the SEC saying that it would modify the agreements for non-employee directors. The filing also read:
“Going forward, non-employee directors will receive all fees for their service on the company’s Board in bitcoin instead of cash.”
The payment method has changed but the salary will be the same. And when the salary has to be accredited to the director’s account, it will be converted from the US dollar to Bitcoin and deposited at the respective wallets. This clears one thing that the company is not paying the board of directors from its own Bitcoin holdings. That would have defeated the purpose of investing in Bitcoin and makes clear sense. At present, the company is holding 91,579 bitcoins at an average price of $24,311 including all expenses. That means that they have already doubled their investment and looking at a long-term goal could scale it by even 100x.
Is paying with Bitcoin a good idea?
If the board of directors has the choice of receiving both fiat and crypto, then it is a good idea. Ultimately, if one thinks that crypto is the future, then the idea of receiving salary in Bitcoin, does seem appropriate. They won’t react to the sudden changes in the price of the currency and ultimately will gain from Bitcoin. But those who don’t believe in it could actually sell off their coins if the value drops and end up with a loss. So, it being a good idea or not completely depends on the person receiving the salary. After the NBA, now companies are paying in Bitcoin. It’s difficult to say what’s next but it’s easy to say that it will be awesome.
What are your thoughts on Microstrategy filing with the SEC to pay its directors with Bitcoin? And do you think it will be beneficial? Let us know in the comments below. Also, if you found our content informative do like it and share it with your friends.
Also Read: How rich is Satoshi Nakamoto, creator of Bitcoin?