April 12, 2023

US Banks Indirectly Invest in BTC through MicroStrategy

Bitcoin vs USD

Bitcoin vs USD

US banks became more interested in investing in Bitcoin in an indirect way over the past months in light of analysts’ negative outlook toward the US economy, according to Blockworks website.

Reports said the Bank of America (BoA) and Fidelity Management bought shares of MicroStrategy (MSTR) worth more than $85 million during the first quarter of this year. MicroStrategy, owned by Michael Saylor, is already investing in Bitcoin as it has acquired 140,000 BTC worth more than $4.1 billion over the past two years. Over the past few days, the American software company bought an additional 1,045 bitcoin (BTC) for a total of $23.9 million.

BoA purchased 86,147 shares, while Fidelity bought 97,199 shares of MSTR over the past three weeks.

The reports also pointed to other banks, which have an optimistic outlook toward the future of Bitcoin and purchased shares in MicroStrategy, including Morgan Stanley and State Street Corporation, which hold more than $93 million worth of MSTR shares.

BoA said in a statement that it considers Bitcoin a safe haven like gold and a safer investment way in light of the troubled economic scene in the US. BoA’s global research team noted: “Digital currencies appear inevitable. We view distributed ledgers and digital currencies, such as CBDCs and stablecoins, as a natural evolution of today’s monetary and payment systems.”

The reports attributed the banks’ increasing faith in crypto assets to the fall of Silicon Valley Bank, Signature Bank and Silvergate Bank and the growing inflation, which is still high and above the Federal Reserve’s target rate.

Meantime, MicroStrategy Chief Financial Officer Andrew Kang pointed out that his company’s corporate strategy and conviction in acquiring, holding and growing their bitcoin position for the long term remains unchanged.

Moreover, Bitcoin has set a new record on Tuesday, touching the $30,000 mark for the first time since mid-2022. Over the last 30 days, Bitcoin recorded gains of about 46%, rising to its highest level in ten months on April 11.

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