Fidelity Digital Assets just announced that it will be accepting bitcoin as collateral against cash loans. Meanwhile, MicroStrategy is getting ready to raise $400 to $500 million to buy more Bitcoin.
After Reaching it`s all-time high price by the end of November, Bitcoin started slowing down. During the last 7 days, it has gone done around 3.6%, however, interest to BTC has not gone down at all. Fidelity Digital, a branch of Fidelity investments, which is one of the biggest American multinational financial services corporations, announced that it will establish a partnership with BlockFi to offer customers loans backed with Bitcoin as collateral.
The target audience of this new product will be investors, who hold Bitcoin and want to get cash without selling it. Fidelity made this decision based on the research that they conducted, according to which interest towards bitcoin has risen significantly among financial investors.
Another great news that should be interesting for cryptocurrency investors is that MicroStrategy has announced that they will be issuing bonds to raise around $400 to $500 million in order to invest these funds in Bitcoin. Just last week They already invested around $50 million bringing their BTC holding close to $700 million.
Even though the price of BTC has stabilized, this kind of institutional interest suggests that there might still be a huge potential upside to Bitcoin. We prefer to think of the recent cryptocurrency price drop as a discount