MicroStrategy now pays its board in Bitcoin
In an 8-K filing with the U.S. Securities and Exchange Commission on Monday, MicroStrategy specified that from April 11 onward non-employee directors on its board will collect all fees for their service in Bitcoin rather than in cash.
Under this new preparation, at the time of sum, the fees will be transformed from U.S. dollars into Bitcoin and then placed into the digital wallet of the director.
On April 5 MicroStrategy acquired about 253 more BTC for $15 million in cash, carrying its total assets to about 91,579 BTC.
Microstrategy Inc. has filed a form with the U.S. Securities and Exchange Commission (SEC) saying that its Board of Directors has changed the compensation arrangements for non-employee directors.
In favour of Bitcoin as a form of compensation for Board service, the Board quoted its commitment to Bitcoin given its skill to serve as a store of value, reinforced by robust and public open-source architecture, released to sovereign monetary policy.
The SEC filing further explains that the board fees owed to directors will remain unaffected and will endure being technically denominated in U.S. dollars under the new agreement.
It also records that “At the time of payment, the fees will be transformed from USD into Bitcoin by the payment processor and then put into the digital wallet of the applicable non-employee director.
As of April 5, Microstrategy states:
The company holds around 91,579 bitcoins that were learned at a collective acquisition price of $2.226 billion and an average buying price of around $24,311 per Bitcoin, comprehensive of fees and expenses.
Business analytics firm MicroStrategy has made yet another large bitcoin (BTC, +1.89%) purchase, buying a further $15 million worth. MicroStrategy announced Friday it purchased approximately 262 more BTC at an average price per coin of $57,146, just a little over $1,000 away from the cryptocurrency's all-time high.
CBW - External Analyst