The global investment bank Morgan Stanley has increased its exposure to Bitcoin by many times by investing in Microstrategy, a company listed on Nasdaq. Morgan Stanley now owns 10.9% of Microstrategy.
Even banks want Bitcoin
On Friday, the company filed with the U.S. Securities and Exchange Commission (SEC) showing that global financial services company Morgan Stanley (Morgan Stanley) has significantly increased its investment in Bitcoin.
Morgan Stanley has announced that it now owns 792,627 shares of Microstrategy. Companies listed on the Nasdaq have been accumulating bitcoins for the past six months and now hold approximately 70,470 bitcoins in their inventory. Based on current Bitcoin prices, Microstrategy’s Bitcoin assets are worth close to $2.9 billion. Morgan Stanley’s investment represents a 10.9% stake in Microstrategy, and the company’s share price recently soared to $531.64.
According to analysts Kevin Luke, Morgan Stanley held 142,908 shares of Microstrategy in the third quarter. Commenting on the investment bank’s latest investment, he wrote on Twitter on Friday:
Compared to the 142,908 shares in the third quarter, it actually increased by 455%…even banks want to get bitcoin.
Microstrategy is the first large-scale listed company with Bitcoin as its main reserve asset. Its pro-Bitcoin CEO Michael Saylor said in December that his company now “purchased 70,470 bitcoins for a total of $1.125 billion, with an average price of $15,964 per bitcoin.” Microstrategy’s bold entry into BTC led Citigroup to downgrade its stock rating to a sell rating. However, the market continues to be bullish on the company because its share price has soared by nearly 86% since the downgrade and it has risen by 25% so far this year.
Since Microstrategy bought large amounts of Bitcoin, many other institutional investors have revealed that they have also invested in BTC or plan to invest in the near future. They include Blackrock, Massmutual, Ruffer and Skybridge. At the same time, the price of Bitcoin has repeatedly hit record highs. JPMorgan Chase predicts that the price of cryptocurrency may reach US$146,000, while Guggenheim Investments believes that Bitcoin is worth US$400,000.
What do you think of Morgan Stanley’s Bitcoin strategy? Let us know in the comments section below.
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