• Fidelity Management and Morgan Stanley increased their MSTR exposure, taking advantage of the opportunity to buy undervalued stock.
• MicroStrategy CEO Michael Saylor believes Bitcoin will benefit from the SEC-induced mess.
• The firm recorded an increase in revenue and decrease in digital asset impairment losses during Q1 2023.
Fidelity and Morgan Stanley Increase MSTR Exposure
American financial services corporation Fidelity Management has increased its MicroStrategy (MSTR) stock holdings by 650% year-to-date. The investment firm is now the third largest holder boasting over 700,000 shares worth $270 each, ahead of the June 15 trading session. Other top 10 institutional investors include Morgan Stanley who opted for 17,000 shares worth approximately $4.6 million and Bank of America who shrank their stash by 227,000 shares year-to-date.
MSTR as a Bitcoin Proxy
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 as investors can cash in on this opportunity to get exposure without immediate risk.
Q1 2023 Financials
The business intelligence firm recorded an over 2% increase YoY in revenue, netting $121.9 million in Q1 2023 and a decrease in digital asset impairment losses with $18.9 million compared to $170 million during Q1 2022.
SEC Regulation Impact
Given the recent regulatory crackdown on crypto exchanges by US Securities and Exchange Commission (SEC), MSTR’s path forward is not yet clear however CEO Michael Saylor believes that Bitcoin will benefit from this “mess” as he stated in a June 13 interview with Bloomberg that it stands alone as “the only institutional grade investable asset in the crypto space” according to regulators view on digital commodities like bitcoin which could rationalize down into “a bitcoin-focused industry”.
Institutional investors are increasingly looking at MicroStrategy stock as a proxy window into Bitcoin given its high dependency on it’s valuation whilst benefiting from liquidity without risk exposure due to its undervalued price at present time compared to other stocks listed on major indices such as NASDAQ or NYSE making it an attractive option for savvy traders looking for quick returns from long term investments