HSBC bans customers from buying MicroStrategy’s shares due to bitcoin concerns.

HSBC has confirmed banning customers of HSBC InvestDirect from buying MicroStrategy shares due to bitcoin concerns.

Investment banking giant HSBC has confirmed banning customers of HSBC InvestDirect from buying MicroStrategy shares due to bitcoin concerns. “HSBC has no appetite for direct exposure to virtual currencies [VCs] and limited appetite to facilitate products or securities that derive their value from VCs,” an HSBC spokesperson noted. Earlier, a message from HSBC, dated March 29, surfaced on social media. The message directed HSBC InvestDirect users who already own MicroStrategy shares not to buy or transfer in additional stock. 

 

MicroStrategy owns 90,531 BTC. 

HSBC allows holding, sale, and outgoing transfers of MicroStrategy shares. MicroStrategy is a pro-bitcoin company. The company owns 90,531 bitcoin, currently worth around $5.5 billion. HSBC remains cautious at a time when a growing number of banks and other major institutions are dipping their toes into the crypto space. Goldman Sachs said last month it would offer bitcoin and other crypto investment vehicles to private wealth management clients in the second quarter of this year. Morgan Stanley has also started offering clients investments in cryptocurrencies.

 

MicroStrategy announces to give bonuses to board directors in bitcoin. 

A modified 8-K form filed with the United States Securities and Exchange Commission revealed the company’s decision to give bonuses in the leading cryptocurrency Bitcoin to the company’s board members from now on. The filing states, “Going forward, non-employee directors will receive all fees for their service on the Company’s Board in bitcoin instead of cash.” Bitcoin has gained a lot of mainstream exposure this year amid its massive winning rally. The firm has accumulated a war chest of over $4 billion worth of bitcoins this year. “In approving bitcoin as a form of compensation for Board service, the Board cited its commitment to bitcoin given its ability to serve as a store of value, supported by a robust and public open-source architecture, untethered to sovereign monetary policy,” 8-K form states.” 

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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