Vanguard, a well-known investment firm, unexpectedly became the largest shareholder of MicroStrategy, opening new horizons for cryptocurrency investments.
Impact of Vanguard on MicroStrategy
Vanguard now owns over 20 million shares of MicroStrategy, accounting for nearly 8% of all Class A shares. This occurred due to indexing, as Vanguard tracks indexes and, having entered the Nasdaq 100, acquired the company’s stock regardless of its cryptocurrency focus.
MicroStrategy Purchases and Their Consequences
Last week, MicroStrategy purchased another 4,225 Bitcoins for $472 million, pushing the total value of its Bitcoin holdings above $73 billion. This success was enabled by the sale of preferred shares, which do not expire and pay dividends.
Bitcoin Market and Experts' Reactions
Since beginning its Bitcoin acquisitions in 2020, MicroStrategy's stock has surged over 3,300%. Experts note that this case highlights how Bitcoin has become too large to ignore, even for traditional investment firms like Vanguard.
Thus, the situation with Vanguard and MicroStrategy illustrates how traditional investment strategies can unexpectedly intersect with the cryptocurrency market, raising questions about the future of the industry.
