The $10 trillion financial giant increases its exposure to Saylor’s company, contradicting its public stance on Bitcoin.
Asset management firm Vanguard Group has become the largest shareholder in Strategy (formerly MicroStrategy). This move appears somewhat unusual considering that the financial giant had previously described Bitcoin as an “immature asset class” unsuitable for long-term investors.
According to data reported by Bloomberg, through its funds Vanguard now holds 20 million shares of Strategy, representing 8% of the company’s outstanding stock and overtaking Capital Group Cos.
The company led by Michael Saylor has transformed its core business into acquiring bitcoin, effectively becoming an indirect investment vehicle for the asset. This strategy has caused MSTR shares to move in sync with bitcoin price swings, prompting other companies to consider similar strategies for their corporate treasuries.
Bloomberg ETF analyst Eric Balchunas commented:
“The fact that Vanguard is now the largest shareholder of $MSTR is proof that God has a sense of humor.”
Balchunas also pointed out how Vanguard, having built its business around index funds, is sometimes obliged to hold stocks tied to assets it may not particularly favor.
The digital asset market is currently experiencing a positive momentum, driven by rising institutional demand and supported by spot Bitcoin ETFs. On July 14, Strategy announced the acquisition of an additional 4,225 bitcoins for approximately $472.5 million, at an average price of $111,827 per bitcoin. This purchase brings the company’s total holdings to 601,550 bitcoins.
