- Morgan Stanley increases the total stake in MicroStrategy to 10.9%, owning a total of 792,627 shares.
- Increased interest in MicroStrategy seems to stem from Bitcoin's stellar rally.
- MicroStrategy's investment in Bitcoin as a primary treasury asset makes it a de facto ETF.
Morgan Stanley, a multinational investment bank and financial services company, declared to own 10.9% of MicroStrategy's shares. This additional investment of 650,000 shares in Q3 of 2020 came when Bitcoin saw its price skyrocket over 170%.
Morgan Stanley's investment in MicroStrategy
In part, Morgan Stanley's decision to invest in MicroStrategy is due to its stock's stellar performance in the last quarter of 2020. The credit to MicroStrategy's performance is perhaps due to their foray into Bitcoin in August 2020, which was a first of its kind, especially considering the size of their investments.
MicroStrategy has profited a total of 336% on its Bitcoin investment as of January 9, 2021, and during the same period, its stock price soared over 330%. The firm's decision has paid off from a financial standpoint while paving the path for other institutions to follow suit.
Twitter CEO Jack Dorsey's payments platform, Square, invested a sizable $50 million into Bitcoin after MicroStrategy announced its investment into the pioneer cryptocurrency. Some of the other institutions that followed suit include Stone Ridge Holdings, 3iQ The Bitcoin Fund, Agro Blockchain PLC, and Fortress Blockchain.
Morgan Stanley isn't the first investor to increase its MicroStrategy holdings, and it won't be the last. Many high net worth enterprises are looking for new investment alternatives to hedge against the growing uncertainty in the global financial system. Those who cannot directly invest in Bitcoin are doing so by purchasing stocks from companies that have exposure to this digital asset, just like Morgan Stanley did.
Loosely put, MicroStrategy's investment in Bitcoin as a primary treasury asset makes it a de facto ETF.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.