HSBC clients report ban on MicroStrategy stock purchases

Britain’s largest bank, HSBC, is reportedly prohibiting clients from purchasing shares of MicroStrategy, which has concentrated a substantial portion of its reserves in bitcoin.

A screenshot of the bank’s notification was shared by one HSBC client going by the handle Camiam.

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… pic.twitter.com/GWSpt5t9eH

— Camiam⚡️☣️ (@Camadamus) April 8, 2021

The screenshot attached to the tweet shows that the message was received on March 29. It states a change in the bank’s policy regarding ‘virtual currencies like Bitcoin and Ethereum and other digital assets’.

“The HSBC InvestDirect platform will not participate in the purchase and exchange of products related to virtual currencies, the bank said. While we allow holding, selling and/or withdrawing MSTR-US in HSBC InvestDirect, new purchases or fund transfers will be unavailable.”

In a subsequent tweet, Camiam lamented that other Bitcoin-friendly companies could also be swept up in the crosshairs. In his view, such a situation runs counter to free-market ideology.

All of these companies maybe on the chopping block because they hold #BTC . This is the opposite of «free market». @wsbmod should be interested in this story! It has ALL the properties of a short squeeze against HSBC! @realmaxkeiser would understand.https://t.co/4djALjS7UR

— Camiam⚡️☣️ (@Camadamus) April 8, 2021

“This story should engage the WallStreetBets community!”, said a regular on Twitter and an HSBC client.

According to Bitcoin Treasuries, MicroStrategy owns 91,579 BTC, whose current market value exceeds $5.5 billion. In the context of increasing investment in the rising digital gold, the company’s shares in February reached a new all-time high above the $1,200 level. It is possible that, as a result, many market participants have started to view the MSTR ticker as tools for indirect exposure to bitcoin.

Earlier in January, reports emerged that HSBC blocks transfers related to cryptocurrency exchanges.

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