For immediate release
Holon Photon Fund takes position in NASDAQ-listed MicroStrategy (MSTR) to give Australian investors unique exposure to Bitcoin
- Holon Photon Fund makes a 6% allocation in MicroStrategy, to gain exposure to Bitcoin
- The allocation contributes to the ‘future’ opportunities dimension of the portfolio delivering on Holon’s investment thesis which is designed to be ahead of the curve
Sydney, Australia – December 31st 2020. Holon Global Investment’s ‘Holon Photon Fund’ has given its investors a unique exposure to the phenomenal growth of Bitcoin via a new strategic allocation to NASDAQ-listed business intelligence company MicroStrategy (Nasdaq: MSTR).
MicroStrategy was founded in 1989 by Michael Saylor and Sanju Bansal and has become a leader in the business intelligence space, renowned for anticipating technology trends.
MicroStrategy recently pioneered a new treasury investment model that saw it invest more than $US1 billion in Bitcoin to enhance returns and protect the value of its capital.
With 70,470 Bitcoins, MicroStrategy is the first publicly listed company to form a strategic digital asset treasury investment thesis.
Heath Behncke, Holon Global Co-founder & Portfolio Manager, says it is difficult to get direct exposure to Bitcoin in Australia’s regulatory environment that does not recognise Bitcoin as an investable asset class, but MicroStrategy now acts as a proxy for direct ownership of the digital currency.
“There is no doubt Bitcoin is emerging as a ‘store-of-value’ much like gold, and we expect it to continue its strong performance,” Behncke says. “The Holon Photon Fund is designed to invest in the opportunities of the future, including digital currencies. By providing exposure to Bitcoin, MicroStrategy gives us an opportunity to not only protect against future global financial instability, including surging debt and the risk of inflation, but to also profit from this disruption.”
Behncke says the MicroStrategy holding is a stepping stone until Holon launches its own Bitcoin Fund in the near future.
MicroStrategy’s Bitcoin treasury investment model has seen the company win the backing of major global institutional investors. Morgan Stanley recently increased its stake to stand at 10.9% (792,627 shares https://news.bitcoin.com/morgan-stanley-bitcoin-microstrategy/), while institutional investors such as Massmutual, One River Asset management and Skybridge have made major investments in the company.
Behncke says MicroStrategy’s CEO and founder Michael Saylor is a savvy operator. “Not only did he go about this in the right way but he gets the security and custody aspects of his business very well. This is custody designed by a technology company. We observed Saylor for some time, took a hard look at the numbers and have high conviction in him as a founder.”
MicroStrategy developed the progressive new treasury model in the wake of the global pandemic, escalating levels of debt and growing concern around the risk of inflation debasing the value of money on the company’s balance sheet.
When announcing its initial investment in Bitcoin in August 2020, Saylor said it reflected MicroStrategy’s “belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.”
“Investing in the cryptocurrency would provide not only a reasonable hedge against inflation, but also the prospect of earning a higher return than other investments,” Saylor added.
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