Banking Giant Morgan Stanley Owns 10.9% of MicroStrategy, a Company That Loaded Up on Bitcoin

Morgan Stanley owns a 10.9% stake in MicroStrategy

• United States-based investment banking giant Morgan Stanley now owns a 10.9% stake in MicroStrategy, a business intelligence firm that made headlines last year for purchasing massive amounts of Bitcoin. 
• Morgan Stanley is likely using MicroStrategy shares as a way to get exposure to Bitcoin. MicroStrategy holds over $1 billion worth of Bitcoin, and its shares have been following the performance of Bitcoin to a significant extent.
• Analyst Kevin Rooke explained that Morgan Stanley increased its position in MicroStrategy by 455% compared to Q3 2020.  
• The Nasdaq-listed MicroStrategy’s pivot to Bitcoin has been hugely beneficial for the company, as its shares are now trading at around $512. When MicroStrategy announced its first Bitcoin investment in August last year, its shares were trading at around $123.
• In December 2020, MicroStrategy raised capital through convertible senior notes to increase its Bitcoin position further. After its latest purchase, the company owns around 70,470 BTC, which translates to $2.45 billion giventhe current Bitcoin price. In total, MicroStrategy spent just under $16,000 per BTC when building out its position – the company’s unrealized profits from its Bitcoin investment are currently over 100%.
• MicroStrategy’s Bitcoin purchase has been described as a catalyst for further institutional adoption of cryptocurrencies. Following MicroStrategy’s BTC investment, we saw Square buy $50 million and MassMutual buy $100 million worth of Bitcoin.
• Per a Bloomberg report, FirstTrust advisors, BlackRock and Vanguard have also held MicroStrategy stock, according to periodic filings.
• Bitcoin hit a record high at just under $42,000 on January 8, but quickly retraced to almost $30,000. After a bounce, BTC is now changing hands at around $34,700.