Fidelity and Bank of America invest in Bitcoin through MicroStrategy

Two financial giants, Fidelity and Bank of America, invested heavily in Bitcoin in the first quarter of 2023 by buying shares of MicroStrategy. MicroStrategy is the largest publicly traded Bitcoin company in the world with a total of 140,000 Bitcoin. Bank of America bought 2.37 percent of the company’s stock in the first quarter.

Greats step in

Parties such as Bank of America and Fidelity will not buy Bitcoin immediately, but the purchase of MicroStrategy shares shows that they do believe in the digital currency. Bank of America is currently the company’s fourth-largest shareholder with 226,980 shares worth approximately $60 million.

Only Capital Research & Management Company, Vanguard and the big BlackRock are still above Bank of America in terms of shares. For example, BlackRock currently owns 6.24 percent of MicroStrategy shares, which are now valued at approximately $156.8 million.

Fidelity also bought back heavily this quarter with 96,800 new shares of MicroStrategy. With that, the investment firm now owns 1.01 percent of all shares of MicroStrategy, which accounts for approximately 1,414 Bitcoin of the company’s total of 140,000.

Bitcoin’s breakthrough

People on Twitter have also noticed that these big names are getting into MicroStrategy. Founder Michael Saylor’s company has been almost entirely focused on Bitcoin since changing its strategy in 2020. It is unlikely that Bank of America and Fidelity will get into MicroStrategy for reasons other than Bitcoin.

Bank of America indirectly owns 3,318 Bitcoin through the purchase of 226,980 shares. For the big BlackRock it is even 8,736 Bitcoin.

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On that note, it’s starting to look like institutional investors really have their sights on Bitcoin now. The banking crisis may also contribute to this.

Many Wall Street analysts also expect the US economy to slip into recession this quarter. That would mean that the Federal Reserve will come up with interest rate cuts again, which generally has a positive effect on the Bitcoin price. Is this Bitcoin’s big breakthrough?

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