Vanguard Holds Significant Stake in MicroStrategy, Indirect Bitcoin Exposure
Vanguard, one of the world’s leading asset management firms, has secured a substantial stake in MicroStrategy (MSTR), providing investors with indirect exposure to Bitcoin (BTC).
While Vanguard has opted against launching Bitcoin exchange-traded funds (ETFs) on its platform, its move into MicroStrategy stock positions it as a significant player in the crypto space.
As of September 2023, Vanguard Group held an impressive 1,126 million shares of MicroStrategy, translating to an ownership stake of 8.24%, according to data from Yahoo Finance.
The hefty investment makes Vanguard the second-largest institutional shareholder in the business intelligence firm.
However, what makes this investment particularly intriguing is the fact that MicroStrategy has strategically diversified its balance sheet by accumulating a staggering 189,150 BTC over recent years, valued at approximately $5.9 billion.
Consequently, some analysts have labeled MicroStrategy as “essentially a leveraged Bitcoin ETF.”
Unlike several other asset managers that have introduced spot Bitcoin ETFs, Vanguard has deliberately distanced itself from the crypto market.
On January 11th, as a wave of asset managers debuted spot Bitcoin ETFs on major Wall Street exchanges, Vanguard opted to block the purchase of such products.
The company justified its decision by stating that these products did not align with its vision, as it remains focused on traditional asset classes like equities, bonds, and cash, which it views as the building blocks of a well-balanced, long-term investment portfolio.
However, despite its official stance on Bitcoin ETFs, Vanguard’s substantial holdings in MicroStrategy indicate its underlying indirect exposure to the cryptocurrency market.
The indirect
Read more on cryptonews.com
