Bank of America has significantly reduced its stake in Strategy Inc, the Bitcoin-centric company led by Michael Saylor. The bank's latest 13F filing shows it has trimmed its position from $495 million to approximately $110 million, a decrease of roughly 78%. This reduction comes after Bank of America had increased its stake in the company just one quarter earlier.
The move represents a significant de-risking effort by the bank, which has gone from being one of the larger institutional holders of MSTR to a more modest position of around 1.2 million shares. Bank of America shed roughly 2.8 million shares in a single quarter.
Institutional Holdings
The reduction in Bank of America's stake in Strategy Inc is notable given the company's volatility profile. As a leveraged bet on Bitcoin, MSTR has become one of the most polarizing stocks in finance. The company's aggressive strategy of raising equity and debt to purchase Bitcoin has transformed it into a publicly traded Bitcoin holding company.
Market Implications
For a bank the size of Bank of America, holding nearly half a billion dollars in a single stock with that kind of volatility profile represents meaningful concentration risk. While the bank still holds roughly $110 million worth of MSTR, the reduction suggests it has right-sized its bet. Neither Bank of America nor Strategy Inc executives have commented publicly on the transaction.