Longtime Bitcoin bull Microstrategy (NASD:MSTR) has filed an 8-K stating that directors on the company’s board will now be paid in Bitcoin.
Microstrategy has emerged as a huge crypto proponent due to its mission of holding Bitcoin on its balance sheet and issuing debt to do so. The strategy has been successful so far with the gain on the company’s initial purchase of BTC pegged at around a billion. In fact, some have labeled Microstrategy’s software services as a side business as the company has become a proxy for the fortunes of Bitcoin.
In the 8-K, Microstrategy stated:
“On April 11, 2021, the Board of Directors (the “Board”) of MicroStrategy Incorporated (the “Company”) modified the compensation arrangements for non-employee directors. Going forward, non-employee directors will receive all fees for their service on the Company’s Board in bitcoin instead of cash. In approving bitcoin as a form of compensation for Board service, the Board cited its commitment to bitcoin given its ability to serve as a store of value, supported by a robust and public open-source architecture, untethered to sovereign monetary policy.
Under this modified arrangement, the amount of Board fees payable to non-employee directors remains unchanged and will be nominally denominated in USD. At the time of payment, the fees will be converted from USD into bitcoin by the payment processor and then deposited into the digital wallet of the applicable non-employee director.”
Perhaps at some point in the future, employees may choose to be paid in Bitcoin too.
Shares in Microstrategy have performed well in 2021, like much of the market. In January, Microstrategy traded at around $425/share. Today, Microstrategy trades at over $700/share – off a bit from its all-time high of around $1300/share that was hit in early February.