A report has been on the round that Microstrategy was blacklisted by HSBC. Investors that have already invested in the company’s shares are no longer allowed to buy additional shares. This was revealed in a message sent by the bank to its customers.
A Twitter user has posted this to his account.
“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 wont allow us to buy @MicroStrategy . They maybe naked short…”
As stated in the letter, HSBC stated that their policy has changed. The bank also stated that the reason behind its move against Microstrategy is that the company is a holder of virtual currency products. Microstrategy has invested heavily in Bitcoin and its founder and CEO Michael J. Saylor is a known bitcoin, staunch supporter.
“HIDC will not participate in facilitating (buy and/or exchange) product relating to virtual currencies, or products related to or referencing to the performance of virtual currency.”
Microstrategy has now a total bitcoin holding of 91,326 BTC including its purchase last month. The company has been in a buying frenzy of bitcoin during dips but it changed its buying behavior after it bought the digital asset before reaching an all-time high.
Micstrategy’s stock price was negatively affected because of its bitcoin investment. It plummeted to more than half compared to its peak price at $1,272 in February. The price has slightly rebounded at $711 today.
Earlier this year other banks have in the UK have already shown hostility on digital assets and HSBC was also one of them. According to reports, these banks declined to accept deposits coming from bitcoin exchanges. Other banks also barred their customers from using their credit cards to buy or sell bitcoin.
In 2018, two of Britain’s largest banks, Lloyd’s Banking Group and Virginia Money banned their customers to use their credit cards to buying bitcoin and other digital assets.
A spokesperson of Lloyds Bank commented on the matter stating:
“It’s a case of protecting credit card customers from the risks associated with the volatility of the price of cryptocurrencies seen over recent months.”
With HSBC’s recent move, other major banks may soon follow suit. Can you ever imagine every single bank barring their customers to invest in bitcoin and other digital assets?