This is revealed in the company’s 8-K filing.

In a unique plug for bitcoin’s adoption, MicroStrategy (NASDAQ: MSTR), the business information firm, has decided to pay its non-employee directors in bitcoin. The company has been a trendsetter, setting aside millions of dollars from its reserves to invest in bitcoin. Now its directors will get bitcoin in lieu of their services. (CROWDFUND INSIDER)

Directors’ compensation modified

In its 8-K filing the company 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.”

MicroStrategy’s bitcoin investment

On April 5 the company announced that it held 91,579 bitcoins acquired at an aggregate purchase price of $2.226 billion and an average purchase price of approximately $24,311 per bitcoin, inclusive of fees and expenses.

The scale of the company’s crypto investment and its profitability has put its core business of enterprise software in the shade.

Jefferies analyst Brent Thill has described the stock as a “tale of two cities.”

Another ironic description: MSTR is basically a bitcoin fund with a side hustle in enterprise software.

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