British multinational investment bank and financial services holding company HSBC said it no longer facilitate products or securities that derive their value from virtual currency.
With this new development, HSBC customers are banned from buying MicroStrategy stock because of its heavy investment in Bitcoin.
HSBC customers are allowed to hold, sell and transfer MicroStrategy shares but will not be allowed to purchase new shares.
Reuters reports that HSBC sent a message to an HSBC InvestDirect client to this effect on March 29.
“HSBC has no appetite for direct exposure to virtual currencies and limited appetite to facilitate products or securities that derive their value from VCs (virtual currencies),” HSBC said in a statement.
HSBC said that its policy against securities tied to cryptocurrency has been under review since 2018, per Reuters.
The current price of bitcoin is $62,749.67, increasing by 3.00% in the last 24 hours. Bitcoin’s current market cap of $1.17T and market volume of $65.41B. In the last 24 hours, bitcoin has dropped to $59,650.11 and experienced a 24 hours high of $63,209.45. Currently, 18,681,575 bitcoins are in circulation.
Stats and Image from Coin Desk
MicroStrategy stands on cryptocurrency, particularly Bitcoin is no longer news. The software company said it now has a portfolio of 91,579 bitcoins, worth around $5.5 billion, which makes up to 80% of its $6.8 billion market capitalisation.
The CEO of MicroStrategy Michael Saylor made an announcement on Monday on Twitter that the board of directors will now get paid in Bitcoin.