Fidelity hogs over 700K MicroStrategy stock (MSTR), increasing its Bitcoin exposure

Key Takeaways:

• Fidelity Management and Morgan Stanley increased their MSTR exposure.
• MicroStrategy lures institutional investors as a Bitcoin-exposed stock.
• Saylor says Bitcoin will survive the regulatory crackdown.

YEREVAN (CoinChapter.com) – American financial services corporation Fidelity Management has increased its MicroStrategy stock holdings by 650% year-to-date.

The investment firm became the third-largest MSTR holder, boasting over 700,000 shares worth $270 each, ahead of the June 15 trading session.

Institutional investors cash in on MSTR

Business intelligence firm MicroStrategy is famously the largest Bitcoin holder with 140,000 BTC, approximately 0.7% of the total amount of Bitcoins that will ever be created. Thus, MSTR stock is highly dependent on Bitcoin valuation.

The business intelligence firm recorded an over 2% increase YoY in revenue, netting $121.9 million in Q1 2023. Moreover, the firm recorded a decrease in digital asset impairment losses, with $18.9 million in Q1 2023 compared to $170 million in Q1 2022.

Meanwhile, heightened MSTR exposure is a “proxy” window into Bitcoin without immediate risk. Thus, some institutional investors cashed in on the opportunity to buy MSTR at an undervalued price.

As mentioned, Fidelity increased its MicroStrategy stock holdings by 650% this year, while banking giant Morgan Stanley opted for 17,000 shares worth approximately $4.6 million. Bank of America, on the other hand, shrunk its MSTR stash by 227,000 shares year-to-date.

MicroStrategy CEO says Bitcoin will benefit from the SEC-induced mess.

Given the recent regulatory crackdown, MSTR’s path forward is not yet clear. In a June 13 interview with Bloomberg, MicroStrategy chief executive Michael Saylor voiced his opinion of the US Securities and Exchange Commission.

Saylor emphasized that Microstrategy has held the belief since 2020 that Bitcoin (BTC) stands alone as the “only institutional grade investable asset in the crypto space.”

[Regulators’] view is crypto exchanges should exchange and should trade and hold pure digital commodities like bitcoin. And so the entire industry is kind of destined to be rationalized down to a bitcoin-focused industry with maybe a half a dozen to a dozen other proof-of-work tokens.

mentioned the CEO.

Also read: Are Bitcoin and Tether Biggest Beneficiaries of Binance-SEC FUD?

Apparently, Fidelity executives agree with his outlook.