Swiss National Bank Buys More 400 Shares Of MicroStrategy

Key Points:

• Swiss National Bank already owns 22,500 MicroStrategy shares after purchasing 400 more during the quarter.
• Other institutional investors and hedge funds have also acquired and sold company stock.
• Berenberg investment company analysts feel the company is a better option than Coinbase.

Swiss National Bank increased its stake in shares of MicroStrategy by 1.8% during the 4th quarter, according to the company in its most recent disclosure with the US Securities & Exchange Commission.

The institutional investor owned 22,500 shares of the software maker’s stock after acquiring an additional 400 shares during the quarter. Swiss National Bank owned approximately 0.20% of the company, worth $3,185,000 at the end of the most recent quarter.

According to a report by German investment bank Berenberg, MicroStrategy offers an attractive alternative to Coinbase for investors looking to get involved in the cryptocurrency sector. The report highlights that investors who are bearish on Coinbase and considering shorting the stock should consider combining it with a long position in MicroStrategy. The correlation between the two stocks has been high at 0.96 since Coinbase’s direct listing in April 2021.

Other institutional investors and hedge funds have also bought and sold shares of the company. Johnson Financial Group LLC boosted its stake in MicroStrategy by 93.6% during the fourth quarter.

The US Securities and Exchange Commission (SEC) has characterized most crypto tokens as unregistered securities, rendering them, and the platforms that enable the trading of these digital assets, as vulnerable to further regulatory actions, the note said. The commission and other regulators have been clear in classifying Bitcoin (BTC) as a commodity rather than a security, the note added.

Berenberg notes that given the current regulatory environment, MicroStrategy, with its unique business model focused on acquiring and owning Bitcoin, is an attractive alternative to Coinbase.

The company currently holds about 140,000 BTC worth roughly $3.8 billion based on current prices. Berenberg notes that macroeconomic drivers of Bitcoin demand are favorable for its stock. Additionally, investor concerns over the weakening US dollar dominance and the concept of de-dollarization have contributed to a more positive outlook on Bitcoin in recent months.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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