Morgan Stanley increases its stake in MicroStrategy by 450%. This American company listed on NASDAQ is known to hold 70,400 BTC in its treasury. The famous investment bank is thus indirectly exposed to Bitcoin.
Morgan Stanley , the 5th largest bank in the United States, has decided to triple its stake in the capital of MicroStrategy .
On December 31, Morgan Stanley filed a form with the U.S. Financial Constable to report the transaction. The investment bank acquired 792,627 shares of MicroStrategy for a total stake of 10.9% .
MicroStrategy is an American company listed on NASDAQ known for having converted part of its cash into bitcoin. Thus, the company bought 21,454 BTC in August, 16,796 BTC in September and finally 32,220 BTC in December.
Thus, MicroStrategy holds a total of 70,470 BTC for a value of 2.8 billion dollars at the current price. The company had communicated:
“This investment reflects our belief that Bitcoin is a reliable store of value and an attractive asset with greater potential for long-term appreciation than holding cash. “
In recent months, Michael Saylor , CEO of MicroStrategy has even multiplied statements in favor of Bitcoin in the media and on Twitter. A commitment that does not seem to bother the American bank.
Indirect exposure to Bitcoin
The share price of the company MicroStrategy has experienced impressive last month saw its shares move from $ 289 to $ 545 over the period of December 8, 2020 January 8, 2021.
The price has even climbed 330% since the company bought its first bitcoin on August 11, 2020 , from $ 123 to $ 545.
Given that MicroStrategy’s shares largely follow the price of BTC, it is likely that Morgan Stanley is looking to gain exposure to Bitcoin without directly owning it.
Another American bank did not have the same analysis. In December, Citbank downgraded MircroStrategy’s stock rating from „neutral“ to „short“ because of its „disproportionate“ exposure to BTC.