HSBC bans customers from buying shares of MicroStrategy, which has become known for its massive bitcoin purchases Financial and business news

  • According to Reuters, HSBC has introduced a new policy preventing customers from buying and moving shares in MicroStrategy to their account.
  • The decision is made because HSBC largely restricts trading in cryptocurrencies.
  • MicroStrategy has made headlines repeatedly in the past few weeks by buying large amounts of Bitcoin.
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HSBC has announced that it will prevent customers from buying MicroStrategy shares and transferring them to their InvestDirect accounts. This emerges from a March 29 message from Reuters calling the stock a “virtual currency product”.

The decision is made as part of a more comprehensive plan by HSBC to restrict trading in cryptocurrencies.

“HSBC has no appetite for direct exposure to virtual currencies and a limited appetite for promoting products or securities that derive their value from VCs (virtual currencies),” said HSBC in the same statement considered by Reuters.

HSBC did not immediately respond to a comment from Insider.

MicroStrategy became the first publicly traded company to buy bitcoin as part of its capital allocation strategy last August. It has since bought billions in coins on multiple occasions and currently holds $ 5.4 billion, according to a filing for approval. In addition, Michael Saylor’s company announced on Monday that it was paying unemployed board members in full in Bitcoin instead of cash.

HSBC’s move contradicts the wave of institutions and large corporations adopting Bitcoin. Heavyweights like Goldman Sachs, the Bank of New York Mellon, Tesla, PayPal and Visa have begun to facilitate transactions with coins or to accept them as a means of payment.

Bitcoin, the world’s most popular cryptocurrency, rose 2.6% to $ 61,229 on Monday, ahead of Coinbase trading this week.

Cryptocurrencies as a whole hit a record high in market cap of $ 2 trillion earlier this month after doubling in value in just three months.

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