HSBC bans customers from buying Bitcoin-backer MicroStrategy shares

Post by noxer » Tue, Apr 13, 2021, 8:32 AM UTC

mike_d wrote: post #37

mullingitover wrote: post #34

Earlier quoted context omitted.

Tesla has a market cap of 673.80B at the moment. Their BTC holdings are barely a rounding error.

Which is a problem in itself. Tesla with a 2% market share in the US, is valued more than Toyota, Volkswagen, Daimler, General Motors, and BMW combined (40% of the domestic market). Toyota makes about $2,500 profit for every car sold. Tesla would need to make $50,000 per unit sold on average, or basically 100% profit on a Model 3, to justify the market cap.

Post by rmtech » Tue, Apr 13, 2021, 8:49 AM UTC

Post by noxer » Tue, Apr 13, 2021, 9:07 AM UTC

mullingitover wrote: post #72

noxer wrote: post #70

Earlier quoted context omitted.

Comparing their asset balance with the market cap of its stock is complete nonsense. Tesla has 100% access to the BTCs and other asset it holds but there is no access to the market cap. Its a fictive price tag on all existing shares. People use it to compare companies. The money does not exist anywhere and certainly can not be used by Tesla.

> The money does not exist anywhere and certainly can not be used by Tesla. What exactly is stopping them from borrowing against their shares?

Post by JumpCrisscross » Tue, Apr 13, 2021, 9:32 AM UTC

Someone1234 wrote: post #4

> “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. But you wouldn't be? This is a product literally called "InvestDirect" where private individuals are buying stocks and assuming all the risk. If you don't want to offer margin on virtual currency products, more pow…

Post by kasey_junk » Tue, Apr 13, 2021, 11:37 AM UTC

JumpCrisscross wrote: post #77

Someone1234 wrote: post #4

> “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. But you wouldn't be? This is a product literally called "InvestDirect" where private individuals are buying stocks and assuming all the risk. If you don't want to offer margin on virtual currency products, more pow…

> if customers are buying with cash, it seems pretty suspect for the bank to claim that is increasing the bank's risk exposure Cash trades still expose brokers to volatility due to settlement. This policy is likely one part regulatory theatre and one part customer selection. Customers buying MicroStrategy stock are unlikely to be lucrative customers for the banking products HSBC hocks.