Bank of America and Fidelity bought a lot of MicroStrategy shares in the first quarter, which suggests they are still interested in indirect bitcoin exposure. Bitcoin volatility has calmed down recently, and traders are looking at the cryptocurrency’s rebound from last year’s lows.
Bank of America purchased 86,147 shares of MicroStrategy (MSTR), and Fidelity bought 97,199 shares in the first quarter. The filings only cover trades between January 1 and March 31 and do not necessarily indicate overall holdings for either company.
Since MicroStrategy started holding bitcoin as a reserve on its balance sheet, the stock has closely followed the price of bitcoin. Traders still consider it one of the closest publicly traded proxies for spot bitcoin exposures.
Youwei Yang, chief economist at Bit Mining, said that MicroStrategy is still known as the “top choice” for obtaining indirect bitcoin exposure via public and regulated markets. In the last three to four months, bitcoin has been on the rise, making it an easy decision for traders to buy MicroStrategy shares and other bitcoin-exposed assets.
MicroStrategy has a long-term corporate strategy of accumulating more and more bitcoin.Despite being under water for nearly a year seems that the wind is changing and the company is afloat again with the price of bitcoin above $30k. Founder Michael Saylor’s business intelligence company owned 140,000 bitcoins (BTC) through April 4. Even though the cryptocurrency market has been affected by US enforcement actions by the SEC and the CFTC, MicroStrategy has maintained its accumulation.
Despite posting a net loss of $250 million in the fourth quarter on its BTC holdings, the US publicly traded company has not been discouraged. On a fourth-quarter earnings call in February, MicroStrategy Chief Financial Officer Andrew Kang said that the company’s corporate strategy and conviction in acquiring, holding and growing its bitcoin position for the long term remains unchanged.
Crypto hedge funds and family offices have been observing MicroStrategy’s latest market moves as traders analyze uncertain macro conditions.