Firm Shifts $5 Billion in Bitcoin to Fidelity Amid Regulatory Risks

Strategy, a firm holding over $57 billion in Bitcoin, has moved 165,709 BTC to Fidelity Custody. This transfer, worth around $5.1 billion, shows a shift towards traditional financial risk management. Strategy's move is likely due to the company's upcoming preferred stock obligations of $120 million next month, with only $54 million in cash on hand.

The firm raised €620 million by selling preferred stock to European investors last year to resolve this issue. Fidelity Custody uses an omnibus system that pools client assets together, making it harder to track specific moves. In contrast, Fidelity Digital Assets operates a New York State-chartered trust with segregated cold storage and a $100M+ insurance program.

According to recent data, Binance holds 693,752.61 BTC, about 30% of the Bitcoin held across major trading platforms, a two-year high since late April. The total amount of Bitcoin held on centralized exchanges has dropped to 2.76 million BTC, with an increase by 45,000 BTC between May 11 and September 8.