• Fidelity Management and Morgan Stanley have increased their exposure to MicroStrategy stock.
• Institutional investors are buying MSTR as a Bitcoin-exposed stock.
• MicroStrategy CEO Michael Saylor believes Bitcoin will survive the SEC’s regulatory scrutiny.

Increased Exposure to MSTR

Fidelity Management and Morgan Stanley have increased their exposure to MicroStrategy (MSTR) by 650% year-to-date, becoming the third largest holder with over 700,000 shares worth $270 each. Bank of America has reduced its stake by 227,000 shares in the same period.

Bitcoin-Exposed Stock

Business intelligence firm MicroStrategy is famously the largest Bitcoin holder with 140,000 BTC, approximately 0.7% of the total amount of Bitcoins that will ever be created. As such, MSTR stock is highly dependent on Bitcoin valuation and thus offering institutional investors an opportunity to buy into MSTR at an undervalued price.

Q1 2023 Revenue

MicroStrategy recorded a 2% increase YoY in revenue for Q1 2023 with $121.9 million and an 18.9 million digital asset impairment loss compared to $170 million in Q1 2022.

SEC Regulatory Crackdown

With recent SEC regulations coming into effect, the path forward for Microstrategy is uncertain but CEO Michael Saylor believes that Bitcoin will benefit from this scrutiny as it stands alone as “the only institutional grade investable asset in the crypto space” according to him.

Conclusion
Institutional investors have seen heightened exposure to MSTR as an opportunity to gain access to Bitcoin without immediate risk due its correlation between price movements and revenue growth for Microstrategy despite regulatory uncertainty from US authorities on cryptocurrency trading exchanges . Fidelity Management and Morgan Stanley are leading holders while Bank of America has reduced its stake accordingly so far this year

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