The sixth largest bank in the world explicitly mentions the connection to “virtual currencies” as an exclusion criterion for investment products.
The bank HSBC has apparently forbidden its customers to buy shares of the Bitcoin investor MicroStrategy and put them on the blacklist.
As can be seen from a corresponding message from the bank to its customers, it is no longer possible to purchase the software manufacturer’s securities on the company’s own trading platform HSBC InvestDirect (HIDC).
Twitter user Camiam posted a screenshot of the message on March 29th:
Hey @michael_saylor , you may want to ask your legal team if what @HSBC_CA is doing here is legal. It sure does not sound like it is! They won’t allow us to buy @MicroStrategy . They maybe naked short … pic.twitter.com/GWSpt5t9eH
– Camiam⚡️☣️ (@Camadamus) April 8, 2021
“The HIDC will no longer allow the purchase and sale of investment products that are related to virtual currencies. Investment products that depend on the price development of virtual currencies are also affected.”
The bank probably rates MicroStrategy as an investment product that is dependent on Bitcoin, and has therefore decided to blacklist the associated stock.
In fact, the software manufacturer is now closely associated with cryptocurrency, as MicroStrategy has emerged as a true pioneer in the field of Bitcoin among the major listed companies in the USA in recent monthsBTC) excelled.
After the company started Bitcoin in August 2020 had bought, it now owns more than 90,000 BTC, which is currently equivalent to $ 5.26 billion.
The ban on MSTR stock is in some ways unsurprising, as HSBC had just recently landed a similar blow to cryptocurrencies. This is how the bank had its customers at the beginning of the year prevented from doing soTo deposit profits from crypto trading in their accounts.
While the MicroStrategy security now appears to be banned, it is not yet known whether other stocks and financial products related to Bitcoin have been excluded from trading on the HIDC.
On the contrary, the shares of other companies that have also invested heavily in the market-leading cryptocurrency are currently still available on the trading platform, including Tesla, Hut 8 Mining and Square.
However, HSBC is not the first bank to react negatively to MicroStrategy’s massive Bitcoin investments. Citibank had already downgraded the MSTR share in December 2020 because it was too closely linked to the price development of the crypto market leader.
The software manufacturer can nonetheless be proud of its bold investment decision, because its own share price, driven by Bitcoin’s record run, climbed to a 21-year record high of 1,200 US dollars in February. Since then, the MSTR has lost almost 50% again, but overall there has been a big plus since the investment in the crypto currency.
Neither HSBC nor MicroStrategy have yet responded to Cointelegraph’s request.