Wall Street heavyweight Morgan Stanley recently filed with the US Securities and Exchange Commission (SEC) informing them about a recent increase in their MicroStrategy stake.
Stake increased by 455%
A December 21, 2020 filing with the SEC revealed that Morgan Stanley has increased its stake in the firm by 455% by buying 10.9% of the company’s shares. The purchase of 792,627 shares of MicroStrategy reflects the bank’s growing interest in cryptocurrencies, especially Bitcoin. Note that MicroStrategy CEO Michael Saylor is one of the most vocal proponents of cryptocurrency and remained bullish on Bitcoin during the summer.
His investments in Bitcoin are worth more than a billion dollars and are being credited to have helped launch the recent bull run in the crypto coin. After MicroStrategy started investing heavily in Bitcoin, a slew of other institutional buyers follows. This includes Anthony Scaramucci’s firm SkyBridge and MassMutual among others.
Banking giant wants in on crypto
Morgan Stanley has increased its stake in MicroStrategy by almost 500% since Q3 2020 which is a mark of confidence on Saylor and his Bitcoin strategy. His business intelligence company has invested over a quarter billion dollars in Bitcoin since August 2020. The crypto price rally helped the company convert more than a billion dollars to Bitcoin.
The firm’s share price has been following the rise of Bitcoin. Morgan Stanley’s focus on the shares could be its latest attempt to benefit from a crypto price rally without holding the coins directly. MicroStrategy share prices have almost doubled in the past one month alone, helping the firm get a bull run of its own.
Visa, MasterCard, and PayPal are already working on making the use of cryptocurrencies normal. Note that JP Morgan CEO Jamie Dimon called Bitcoin a “fraud” back in 2017. Later, the bank started working on its own blockchain and digital coin. It recently predicted that the price of the leading cryptocurrency could go all the way up to $146,000.