Key Takeaways:
- MicroStrategy will offer Bitcoin (BTC) in their employees' 401K savings plan
- The company will be the largest publicly-traded entity to take the service from Fidelity Investments
- According to MicroStrategy CEO Michael Saylor, Bitcoin is the perfect asset for a retirement plan
YEREVAN (CoinChapter.com) – MicroStrategy will offer its staff the option to invest in Bitcoin (BTC) as part of their 401K savings plan. The news comes after investment firm Fidelity announced it will allow investors to allocate a portion of the 401Ks they offer to their employees to BTC. The move makes them the first provider to offer crypto for retirement savings.
MicroStrategy will partner with the company in this regard. As a result, it will be the first publicly-traded company to offer the option to employees.
Michael Saylors, CEO at MicroStrategy CEO and crypto enthusiast shared the news on Twitter.
“MicroStrategy looks forward to working with Digital Assets to become the first public company to offer their employees the option to invest in bitcoin as part of our 401(k) program,”
he wrote.
For the uninitiated, a 401(k) is retirement savings and investing plan that gives employees a tax exemption on monetary contributions. Employers automatically withdraw the funds from employee paychecks and invest in funds on their behalf. The employees can choose the fund they prefer investing in from an available list, which will now include Bitcoin (BTC).
Dave Gray, Head of Workplace Retirement Offerings and Platforms, claimed it shows the company’s trust in blockchain technology. According to Gray, Fidelity investment believes blockchain is the future of the financial industry.
“As a leader in digital assets, we are thrilled to be the first to offer employers exposure to bitcoin for the core lineup of 401(k)s,”
Gray said in the press release.
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Bitcoin is the perfect asset for a retirement plan: MicroStrategy CEO
According to MicroStrategy CEO Michael Saylor, Bitcoin (BTC) is less risky than bonds and stocks. As a result, it is the perfect asset for a retirement plan.
In an interview with Morgan Brennan and Michael Santoli of CNBC, Saylor celebrated the recent development.
“Bitcoin (BTC) is a digital property and that makes it the perfect asset for a retirement plan… The 401K plan is a very common thing for millions of workers to use to protect their family interests. This is going to feel an important vacuum,”
he said.
According to Fidelity, employees will be able to invest in Bitcoin (BTC) through a Digital Assets Account (DAA). The company will hold BTC in the DAA on the Fidelity Digital Assets custody platform to ensure institutional-grade security.
However, authorities are cautioning against the involvement of Bitcoin in 401K savings plans. Last month, the Department of Labor urged Fiduciaries To Exercise “Extreme Care” Regarding Cryptocurrency Investments.
Meanwhile, Fidelity also promised in the press release to continue building its digital asset platform, leveraging blockchain technology and expanding use cases beyond Bitcoin (BTC).
