Global investment bank Morgan Stanley has greatly increased its exposure to bitcoin by investing in Microstrategy, the Nasdaq-listed company that currently owns approximately 70,470 bitcoins. Morgan Stanley now owns a 10.9% stake in Microstrategy.
‘Even banks want Bitcoin’
Global financial services company Morgan Stanley has significantly increased its exposure to bitcoin, according to the company’s filing with the U.S. Securities and Exchange Commission (SEC) on Friday.
Morgan Stanley has stated that it now owns 792,627 shares of Microstrategy. The Nasdaq-listed company has been stacking bitcoin for the past six months and now has approx 70,470 bitcoins in his treasury. At the present BTC price, Microstrategy’s bitcoin stash is worth nearly $ 2.9 billion. Morgan Stanley’s investment represents a 10.9% stake in Microstrategy, whose share price has recently risen to $ 531.64.
According to analyst Kevin Rooke, Morgan Stanley held 142,908 shares of Microstrategy in the third quarter. Commenting on the investment bank’s latest investment, he tweeted Friday:
That’s actually a 455% increase, compared to 142,908 stocks in Q3 … Even the banks want bitcoin.
Microstrategy was the first major publicly traded company to make bitcoin its primary reserve asset. Pro-bitcoin CEO Michael Saylor said in December that his company had now bought “a total of 70,470 bitcoins for $ 1.125 billion at an average price of $ 15,964 per bitcoin.” Microstrategy’s bold move to BTC Citigroup had led to it downgrade its stock up to a sales assessment. However, the market continued to favor the company as its stock price is up nearly 86% since the cut and it is up 25% year-to-date.
Since Microstrategy’s major bitcoin purchases, a number of other institutional investors have revealed they have invested as well BTC or have plans to do so in the near future. They include Blackrock, Massmutual, Ruffer and Skybridge. Meanwhile, bitcoin’s price has repeatedly hit record highs. JPMorgan has predicted that the cryptocurrency’s price could reach $ 146,000 Guggenheim Investments sees the value of bitcoin at $ 400,000.
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