Bitcoin News Today: "Strategy Moves $5.1B in Bitcoin to Fidelity: Safeguarding Assets in the Face of Regulatory and Liquidity Challenges"
- Strategy transferred $5.1B in Bitcoin (58,390 BTC) to Fidelity from Coinbase , diversifying custody away from single providers. - Fidelity now holds 427,000 BTC as a top institutional custodian, using pooled omnibus systems for security over transparency. - The move follows Strategy's €620M fundraising to meet $120M obligations, amid MSCI's proposed crypto-holding exclusion risks. - Fidelity's opaque custody model enables flexible transactions but raises concerns over hidden sales, contrasting Coinbase's
Strategy has transferred $5.1 billion worth of
This change highlights the increasing trust institutions are placing in Fidelity’s custody services, which use an omnibus structure. This system combines client assets,
This development comes as Strategy faces financial headwinds, with $120 million in preferred stock payments due next month. To shore up liquidity, the company recently secured €620 million through a preferred stock issuance, ensuring it can meet its commitments while continuing to grow its Bitcoin holdings
The decision to change custodians also reflects a desire for greater flexibility and control. While Fidelity’s omnibus system conceals the exact details of Strategy’s holdings, it enables more adaptable asset management, such as off-chain settlements or OTC trades without immediately impacting the market
As custody solutions continue to develop, companies like Fidelity and Coinbase are playing a pivotal role in shaping the institutional Bitcoin market. With custodians now holding over 13.7% of all Bitcoin in circulation,
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