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MicroStrategy to let employees invest in Bitcoin through 401(k) retirement plans

MicroStrategy (NASDAQ: MSTR) revealed on Tuesday, April 26, that it will offer Bitcoin to staff as an option for their 401K retirement savings account.

The news follows the announcement that investment giant Fidelity will enable investors to be able to allocate a portion of their 401(k)s into Bitcoin later this year, according to a report in the Wall Street Journal.

MicroStrategy CEO and Bitcoin advocate Michael Saylor tweeted:

“As @MicroStrategy continues to be a pioneer in bitcoin for corporations, we are planning to offer our employees the option to invest in Bitcoin as part of their 401K portfolio. $MSTR.”

he added:

“MicroStrategy looks forward to working with Digital Assets to become the first public company to offer their employees the option to invest in bitcoin as part of our 401(k) program.”

Notably, Microstrategy chairman and CEO Saylor had recently dismissed rumors that the company is secretly selling its Bitcoin holding. 

Fidelity expects crypto to shape future of investing

Fidelity will provide the new option to its clients through its new workplace digital assets account (DAA), launched on April 26, according to a press statement

Dave Gray, Fidelity’s head of workplace retirement offerings and platforms, said:

“There is a need for a diverse set of products and investment solutions for our investors. We fully expect that cryptocurrency is going to shape the way future generations think about investing for the near term and long term.”

The aim is to allow investors to contribute up to 20% of their retirement funds to bitcoin; however, plan sponsors may choose to decrease that barrier at their discretion. Gray added that the offering would be exclusive to Bitcoin and would not consider other cryptocurrencies from the outset.

As per the press release:

“Bitcoin in the DAA will be held on the Fidelity Digital Assets custody platform to ensure institutional-grade security.”

Finally, Fidelity’s trading and custody platform will allow employees to invest up to 20% of their account balances in a Bitcoin account, in addition to allowing them to transfer the equivalent amount of their payroll contributions to the Bitcoin account as mentioned with MicroStrategy.