Microstrategy Will Offer BTC Retirement Plans For Its Employees

Microstrategy will offer BTC Retirement plans for its employees and will be the first company to give the employees a chance to add BTC to their 401K savings account so let’s read more today in our Bitcoin news.

BTC evangelist and Microstrategy CEO Michael Saylor announced that Microstrategy will offer BTC retirement plans for its employees and will be able to invest in crypto as a part of 401K savings accounts. The announcement came as Fidelity investmetns rolled out the Digital Asset Account giving companies access to BTC. Microstrategy will work with Fidelity and will allow employees to add BTC to their retirement funds. The 401K account allows employees to get a tax break on the money that they contribute from their salary to a retirement plan. Saylor added:

“Bitcoin is the digital property and that makes it the perfect asset for a retirement plan. It is less risky than bonds, stocks, commercial real estate, than gold—it was kind of built for this.”

According to the new investor letter, his experiment is paying off. MicroStrategy CEO Michael Saylor called Microstrategy’s BTC to play a huge success in driving the shareholder value in the investor letter that was released recently.

He called the two-year-old complementary to the company’s decades-old analytics business and noted that he will continue to pursue both strategies. MicroStrategy spent $3.97 billion acquiring 129,218 BTC for an average of $30,800 apiece and with BTC now trading about $10,000 above the level, the trade remains in the green but not as nearly as much when BTC hit $69,000. Saylor’s acquisition strategy grew increasingly creative and what started as an experiment with excess cash amassed during the COVID lockdown brought some bigger share sales, convertible note offerings, and crypto collateralized loans which were used to buy more BTC. MicroStrategy is Wall Street’s biggest balance sheet BTC bull.

The subsidiary of Microstrategy executed a $205 million cash loan using the current BTC holdings as collateral. The Silvergate Bank focused on crypto and serviced the loan via the SilverGate Exchange NEtwork which provides loans collateralized by BTC. The loan was secured by BTC in MicroStrategy’s collateral account and besides buying more BTC, the proceeds will be used to cover the fees related to loan transactions and general corporate costs.