Hong Kong and Shanghai Banking Corporation Limited (HSBC) has reportedly banned investors and shareholders from trading virtual currencies.
Preston Pysh is a famous crypto enthusiast retweeted A thread from “Documenting Bitcoin” where the Twitter handle released a screenshot of an email from HSBC. According to the leaked email recording, HSBC stopped people from buying shares in business analytics firm Microstrategy. The reason mentioned in the email is the company’s commitment to digital currencies.
HSBC Bank prevents their customers from holding equity as Bitcoin is on their balance sheet!
Very scared @HSBC? You look pathetic. https://t.co/euOnteqUvt
– Preston Pysh (@PrestonPysh) April 8, 2021
In the alleged email from HSBC, it was pointed out that, according to the newly defined rules, no asset with a direct relationship to the digital currencies, i.e. BTC or ETH, may be operated through the bank. A leaked screenshot of the email read:
“HIDC (HSBC InvestDirect) will not participate in the facilitation (purchase and / or exchange) of products relating to virtual currencies or of products relating to or relating to the performance of virtual currencies.”
Microstrategy was explicitly mentioned in the e-mail, as allegedly “MICROSTRATEGY INC-A – MSTR-US” is a virtual product. The last read in the email was that although “MSTR-US” holdings can initially be held, sold or transferred in Microstretagy’s HSBC Invsetdirect account, no further transfers or purchases are permitted.
Recently, unlike many other financial institutions, HSBC has been heavily involved in crypto as it decided in January of this year not to target investors dealing with crypto exchanges in the UK.
In addition, Microstrategy’s investment in Bitcoin is quite well known. It is already common knowledge that the company accumulated 90,000 BTCs in 2020. Michael Saylor, CEO of Microstrategy, has also planned to buy more BTCs every week. With the bulk of the company’s assets in BTCs, its stock value was tightly intertwined with the value of BTC. When the BTC went bullish, it also affected the company’s stock value to grow significantly.
As of August 2020, each MSTR and BTC were worth $ 142 and $ 10,000, respectively, and when the BTC hit $ 61,000, the MSTR also rose 1000% from $ 142 to $ 1,100.